Reported data from the latest MBT Affordability Index has revealed that the ‘affordability gap’ – the difference between the loan amount requested and the loan offered – dropped to a record low of 15% in November last year.

This gap, where no lender is able to meet the loan amount requested by a broker, is far lower than the 21% seen last February and means brokers are more likely to be able to find a lender to meet the affordability criteria of the applicant.

Good news for first-time buyers
The picture is positive for first-time buyers as, when looking at specific sectors of the market, the data shows the affordability gap for this group has continued to fall, dropping to a record low of 10% in November, down from the previous record of 11% in October.

Not all positive
In comparison, the opposite trend was seen for home movers and remortgage customers, with the number of lenders unable to provide the loan amount requested rising for both groups.

Where lenders could not provide the loan requested by a broker, the gap between the loan amount sought and the amount offered has widened. In November, the average difference between the two was £23,185, the highest seen in 2020 and up from £15,000 last February.

Your home may be repossessed if you do not keep up repayments on your mortgage

Catch up on our other blog posts:

Plan to avoid home buying stress

Plan to avoid home buying stress

Job interview, driving test, family life… the list of life’s stresses is, unfortunately, long and varied. New research has revealed, however, that buying a home comes out on top.   Can’t Buy Me Stress 37% of recent UK homebuyers said that buying a house was one...

read more
Seeing protection in a new light

Seeing protection in a new light

Nobody wants to think something bad happening to them. Perhaps it’s why so many people shy away from protection insurance – after all, it’s all too easy to think ‘it’ll never happen to me’.   Unfortunately, ‘it’ can and does happen, whether ‘it’ be injury,...

read more
Back to normal? Property update 

Back to normal? Property update 

 Amid the backdrop of war in Ukraine and the spiralling cost of living, unpredictability is at the forefront of many people’s lives right now. The outlook for the housing and mortgage markets is no less uncertain.   Taking a step back, however, it is possible to...

read more

(Your home may be repossessed if you do not keep up repayments on your mortgage)

We charge a fee for arranging and advising you on the mortgage. The fee will be dependent on your circumstances but will not exceed £499. (Our typical fee is £299.)

For Lifetime Mortgages/Equity Release the fee will be £799.

Our mission is to provide honest mortgage advice, whilst helping you save money.

Get in contact

Flexible appointments

Or call —02380224925


Providing helpful and friendly mortgage advice in Southampton

First Floor, 9 Salisbury Road, Totton, Southampton, SO4O 2HW

02380 224 925

South Coast Mortgage Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered Office: 59 The Avenue, Southampton, Hampshire, SO17 1XS. Registered Company Number: 08414746 Registered in England & Wales.