Total applications via brokers were up 13% in October compared with September to record double-digit growth for the second successive month, having also risen 13% from August to September.
The data indicated consumer appetite for mortgage finance remained strong despite reports of cooling house prices and tighter affordability checks. Applications for January to October 2014 were up 32% on the equivalent period of 2013 and have now exceeded the 2013 year total by 11% after passing this milestone in October.
Remortgage applications during October were up 17% in the month and 34% year-on-year, while homebuyer applications were up 11% in the month and 17% year-on-year.
Rising applications through brokers also indicated their growing role since the Mortgage Market Review (MMR). The Council of Mortgage Lenders (CML) data showed a growing share of customers turning to intermediaries to find a loan rather than going direct to lenders.
October’s National Mortgage Index also revealed that intermediary product numbers grew by 270 in October compared with September to reach 8,812, while direct-only products rose 136 to 3,663.
Brian Murphy (pictured), head of lending at Mortgage Advice Bureau, said: “The direction of house prices, interest rates and wages are giving consumers plenty to think about, and these figures showed that growing numbers of borrowers are focused on progressing their house buying or remortgaging plans and seeking independent advice to make it happen.
“After seeing the Bank of England flirt with a first interest rate rise in seven and a half years, more people will be conscious that change is coming and looking for opportunities to make the most of today’s low prices. With product numbers continuing to rise, they have more choices at their disposal than at any point since the market recovery began.”
The MAB index also suggestsed that MMR affordability tests have had some impact on borrower profiles: October’s average loan-to-value (LTV) for homebuyers was 69.7%. This dropped for a third successive month to the lowest figure for a year – since October 2013 (69.1%) – having reached 71.8% in March.
The proportion of homebuyers opting for fixed rates grew to 94% in October, from 92% in September, despite reports that the Bank of England base rate may remain at 0.5% until after the general election.
