According to the Mortgage Broker Tools (MBT) latest affordability index, this was lowest level of affordable remortgage enquiries since July 2020. A mortgage is deemed affordable if there is at least one lender that can meet the loan size requested by the applicants.
MBT figures show that the percentage of affordable remortgage enquiries has remained above 80 per cent since July 2020.
The index analysed cases processed through MBT’s research platform and showed a wide spread in the affordability available to remortgage customers, with the average maximum loan available being £253,000. The average minimum loan available dropping to £108,216 – a difference of nearly £145,000.
Tanya Toumadj, chief executive at Mortgage Broker Tools, (pictured) said: “There has been a lot of talk of a remortgage boom this year, but our data shows that fewer remortgage enquiries are considered affordable than at any time since July 2020.
“This could be due to lenders tightening their calculators, customers experiencing a change of income or hoping to increase their borrowing, or a combination of all three. What is clear is that full research, using a comprehensive and accurate affordability platform is vital if brokers want to give their clients the best chance of meeting their objectives and making the most of the potential remortgage boom.”
MBT Affordability provides brokers with a calculation of how much their clients can borrow. It features a panel of more than 40 residential and 66 buy-to-let lenders, based on affordability and criteria; results are delivered in under a minute, with no approximations or estimates.