Mortgage Broker Tools Affordability Index MBT Affordability index
Mortgage Broker Tools Affordability Index
MBT Affordability index • MBT Affordability Index tracks and measures aggregated market affordability results over time, to provide data driven insight into the mortgage market and affordability trends. Publish to market at the beginning of every month • Affordability index: Insight into the trends around the difference and spread between loan requested and the highest and lowest results from over 40 lenders for the same case • Loan requested: Average of all loans requested. Indexed to 1 in Jan 2020 (£ 215, 002) • Maximum loan offered: Average of the highest loan offered by a lender • Minimum loan offered: Average of the lowest loan offered by a lender that is >£ 0 • Affordability gap: Insight into cases that do not get offered the loan requested and how far away the highest loan was • Requested loan not offered: % of cases where no lender met the loan requested. In January 20% of cases did not get offered the loan amount they wanted • Gap to the requested loan: % difference between the loan requested and the maximum loan offered. In January the loan offered was 8% below the loan requested, an average of £ 15, 380 Profiles Whole of Market (All Resi cases) First Time Buyer Remortgage Home mover Purchase Value - LTV - Income - Age - £ 125 k to £ 500 k £ 150 k to £ 650 k £ 150 k to £ 700 k 80% to 95% 30% to 85% 45% to 90% £ 25 k to £ 100 k 25 to 40 30 to 55 30 to 50 2
Whole of Market Affordability Gap 30% 25% 20% 15% 10% 5% 0% Jan Feb Mar Apr May Jun '20 Jul Aug Sep Oct Nov Dec Jan '21 % of cases where no lender met requested loan amount 3
First Time Buyer Affordability Gap 30% 25% 20% 15% 10% 5% 0% Jan Feb Mar Apr May Jun '20 Jul Aug Sep Oct Nov Dec Jan ' 21 % of cases where no lender met requested loan amount 4
Remortgage Affordability Gap 30% 25% 20% 15% 10% 5% 0% Jan Feb Mar Apr May Jun '20 Jul Aug Sep Oct Nov Dec Jan '21 % of cases where no lender met requested loan amount 5
Home Mover Affordability Gap 30% 25% 20% 15% 10% 5% 0% Jan Feb Mar Apr May Jun '20 Jul Aug Sep Oct Nov Dec Jan '21 % of cases where no lender met requested loan amount 6
Self employed Affordability Gap – Self Employed 50% 40% 30% 20% 10% 0% Jan Feb Mar Apr May Jun '20 Jul Aug Sep Oct Nov Dec Jan '21 % of cases where no lender met requested loan amount 7
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