Analysis of cases processed through its research platform found that the maximum loan size available to the average customer reached £254,821 in the month. That’s a jump of almost ten per cent on the £234,224 registered in January.
According to Mortgage Broker Tools, the increase has been driven by improved options for first-time buyers. It found that the maximum loan size offered to the average first-time buyer jumped from £230,555 in January to £276,060 in September.
Tanya Toumadj (pictured), CEO at Mortgage Broker Tools, pointed to the level of competition among lenders at the moment which had resulted in far more options for borrowers. This had stretched beyond cutting rates, and into greater choice at higher loan-to-values (LTVs) as well as lenders making changes to their affordability calculators in order to stand out from the crowd.
She continued: “At Mortgage Broker Tools, we’ve also seen the introduction of new ways for first-time buyers to enhance their affordability options, with results that show the benefits of combining an equity loan with a first charge mortgage, and this has certainly helped to boost the average loan size available to this group of customers.”
Toumadj added that while the maximum loan size is now at its highest point this year, the fact that a quarter of cases are deemed unaffordable by lenders highlights the importance of brokers researching the entire market.
