The likelihood of lenders providing the mortgage loan amount requested through a broker has reached its highest point this year, the latest Mortgage Broker Tools (MTB) affordability index has suggested.
The affordability gap, where no lender is able to meet the requested loan amount, remained at 16 per cent in September – its lowest level this year.
According to data analysis by MBT Affordability, the gap was at its widest in February, when no lenders were able to meet the loan requested by a broker on 21 per cent of cases.
For first-time buyers and remortgagors, the gap remained flat compared to August while home movers saw a higher number of lenders unable to meet their needs.
Lenders were unable to meet loan requirements for home movers in 15 per cent of cases in August and this rose to 18 per cent in September.
Although the gap was still lower than earlier in the year, MBT suggested this showed increased asking prices were having an impact on client expectations.
Tanya Toumadj (pictured), chief executive at Mortgage Broker Tools, said: “The affordability gap shows brokers how likely it is that they will be able to source a lender with the ability to meet the loan requirements of their client, so it’s good news that this has remained low in September.
“So, brokers know that there are lenders able to meet the affordability requirements for their clients, the next step is finding them.”
Shekina is a reporter at Mortgage Solutions. She has over two years experience in the B2B publishing market, with previous industries including the pet, funeral, hospitality, retail and jewellery trades.
Follow her on Twitter at @ShekinaMS