14.07.11 by Andrew Montlake
London Mortgage Review June 2011
Mortgage applications (excluding remortgages) were up 51% in June compared to May, following a substantial 57% rise in applications in May compared to the previous month.
Mortgage applications in the first half of 2011 were 16% higher than the corresponding period in 2010.
The average LTV on mortgage applications (excluding remortgages) was 67.4% in June compared to 66.6% in May. The average mortgage loan size was £312,158 in June compared to £255,379 in May, an increase of 22%. The average deposit put down by a mortgage applicant in June was £150,984.
The average age of a purchase mortgage applicant in London in June was 39 years 4 months.
On the remortgage side, the average LTV on remortgage applications dropped in June to 58.7% from 61.4% in May, while the average loan size in June was £335,000.
Comment on the London Market
“The mortgage market has undergone a substantial shift since the start of the year with competition between lenders returning to battle over the high deposit / high equity borrowers. With more low rate products being offered by lenders than we’ve seen in a while, and a noticeable relaxing of the exceptionally tight underwriting criteria we were seeing at the turn of the year, applications have increased to match the underlying demand.
“Large loans are now being actively sought after by the High Street again with lenders such as Nationwide and ING targeting loans up to £2m, loans which had disappeared into the arms of the private banks. This sector of the market is likely to remain strong in the capital, with sales of £1m plus properties changing hands quickly. Although foreign money is undoubtedly the main driving force, we are beginning to see more interest from the City, with buyers growing in confidence and tentatively dipping their toes back into the market.
“Despite growing confidence amongst lenders, they are still cautious about who they lend to, targeting the low LTV business, with average LTVs remaining well below the 70% level. However, we are slowly starting to see a change in the offering at higher loan-to-values, with more competitive products appearing at the 80%, 85% and even 90% levels. Over the next six months, we can expect to see more products and ingenuity in the higher LTV arena – and this is crucial if we are to see a sustained recovery.”
The full National Mortgage Index for June 2011 including nationwide statistics is available here
Monty’s Mortgage Blog
18.05.12
Why Should A Borrower Choose To Use A Mortgage Broker?
There still seems to be a general misconception of what a mortgage broker actually does. Any brokers can tell you in seconds what the cheapest rate in the market is and, at various times, this will vary between a direct to lender product or a broker only deal, but this misses the point. Can this product actually be attained and is it the best to fit your personal circumstances?
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