Record low for maximum loans in January - MBT Affordability Index
15 February 2021
The latest MBT Affordability Index has found that the average maximum loan available to mortgage borrowers dropped to a record low in January.
According to the data, the average maximum loan available across the whole of the market fell to £234,224, representing a decrease of 12% on January last year and a drop of nearly 14% from its peak last September.
The biggest squeeze on affordability was for First Time Buyers. The average maximum loan available to this group fell to £230,555 this January, compared to £264,411 in January 2020 – a decrease of nearly 13%.
For the first time this month, the MBT Affordability Index has included separate data to provide insights into the affordability landscape for the self-employed, and it has revealed a more stable picture than suggested by some headlines.
According to the Index, the average maximum loan offered to self-employed mortgage applicants was £221,400 in January this year – a fall of just over 3% from its peak last August. The minimum average loan available to the self-employed also recovered to £118,800 in January. This represents an increase of 45% on its lowest point, which was last April, and a rise of just over 43% on November.
Full details from the Index are included in the attached documents and more information is available at www.mortgagebrokertools.co.uk
