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Brokers more successful at sourcing requested mortgage loans – MBT

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  • 16/09/2020
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Brokers more successful at sourcing requested mortgage loans – MBT
The proportion of cases where no lender can meet the loan amount requested by a mortgage broker dropped to 15 per cent in August, according to Mortgage Broker Tools (MBT).

 

The MBT affordability index suggests brokers are more likely to fulfil the requirements of their clients than they were earlier in the year. 

According to the datathis is an improvement on February where 21 per cent of mortgage cases were unable to obtain the desired loan amount. 

However, on cases where brokers have been unable to find the requested loan size requested, the average difference between the loan amount requested and loan amount offered peaked in August at 11 per cent, up from seven per cent in March.  

This indicates that clients who are unable to find their requested loan size are accessing smaller loans than they were earlier in the year.   

The gap was in requested loans and loans offered was largest for homemovers in August, as 15 per cent of cases had no lender able to meet the requested loan amount. However, this was down from 22 per cent in February. 

For first-time buyers, 12 per cent of cases were unable to source their requested loans in August, down from April’s peak of 24 per cent. 

Remortgagors have seen consistency in the loans requested and the loans offered, as this peaked at 14 per cent of cases unable to source requested loans in May before it dropped to 13 per cent in August. 

Tanya Toumadj, CEO at Mortgage Broker Tools, said: “The affordability gap is an important element of the MBT Affordability Index as it shows brokers the likelihood that they will be able to source a lender with the ability to meet the loan requirements of their client.  

The larger the affordability gap, the less likely that the market will be able to offer a solution, and vice versa. 

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