Mortgage News
Intermediary mortgage products fell in 2012 – MAB
The number of mortgages available through advisers fell 15% in 2012 to under 6,000, where direct products rose 20%.
However, overall product availability fell in 2012, having peaked at 8,781 in 2011. This was 240% higher than 2009, driven by a 265% leap in the number of intermediary products, according to a 2012 MAB index round-up.
Equally, more competitive mortgage rates did little to improve 2012 housing affordability, as any income growth was eclipsed by rising deposits and house prices.
An 8% increase in purchase applicants’ typical income was outstripped by a 12% annual rise in the average house purchase price.
Among existing homeowners, the average income for remortgage applicants fell by nearly £2,000 between 2009 and 2012, despite borrowing £12,500 more.
Homeowners were also forced to find markedly bigger deposits for house buys in 2012. Last year’s deposit increase of 15% dwarfed the 3% growth between 2009 and 2011.
Why new-build property investment is appealing to a new generation of landlords
Sponsored by BM Solutions
The average buyer had to find almost £10,000 more for a deposit than in 2009 and borrow more than £32,000 extra.
Over 81% of borrowers chose a fixed rate in H1 2012, said the broker group, rising to 86% in H2, in contrast with 60% in 2010.
Over 81% of all purchase mortgage applicants chose a fixed rate, rising to 86% in the second half of the year, against 60% of purchase business in 2010.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Even though the typical purchase income rose annually, finding an additional £10,000 to put down for a deposit is a considerable ask.
“Thankfully, the conditions are in place to make significant headway on this front in 2013. Industry figures show that lending to first time buyers is growing, and as more incentivised funding is drawn down from the Bank of England, we can expect the competition between lenders to fuel increasingly attractive product offerings at both ends of the market. It is shaping up to be good time to explore the potential for purchasing or refinancing a property, and brokers’ role in helping consumers review their options will be more important than ever.”