The Specialist Lending Study found that 84% of all respondents say the current economic environment will make it harder for them to get a mortgage
The number of affordable options for first-time buyers dropped by 40% last year, reveals data from Mortgage Broker Tools (MBT) which has been released for a dual-branded version of the Pepper Money Specialist Lending Study.
MBT has partnered with Pepper Money to provide analysis of broker activity on the research platform alongside the customer insights that were recently disclosed in the specialist lender’s landmark research study.
The Specialist Lending Study found that 84% of all respondents say the current economic environment will make it harder for them to get a mortgage.
Likewise, as per the MBT Affordability Report 2023, around 9 in 10 brokers (89%) said they have to work harder to secure the loan size their clients want as a result of the cost-of-living crisis. This is because they now have to look at a broader set of lenders to find the right fit.
MBT says that, based on a number of typical customer profiles, the number of affordable options for FTBs borrowing 90% loan-to-value dropped by 40% in 2023, and the number of affordable options for customers borrowing at high loan-to-income dropped by 27%.
Tanya Toumadj, Chief Executive Officer at Mortgage Broker Tools, commented: Continued high inflation is still causing pressure on household budgets. However, this has not ultimately had a real impact on borrowers being able to secure the loan size they want as the percentage of cases where there is at least one lender able to provide the loan required remains steady at around 75%. However, what has changed is the range of options, with the average difference between the highest loan offered and lowest loan offered for the same customer rising from £127k to £145k.
