9 August 2021
The MBT Affordability Index has revealed that mortgage affordability options for the self-employed contracted again in July.
Analysis of real cases processed through Mortgage Broker Tools (MBT) shows that in July, the average maximum loan size available to a self-employed applicant was £221,000 – a fall of more than 5% on June and the lowest level since February. Similarly, the lowest average loan size available to a self-employed applicant fell to just £90,452 in July – a decrease of nearly 17% on June and the lowest level since November last year.
The data also showed that fewer self-employed cases are considered to be affordable by lenders. Just 67% of self-employed enquiries were considered to be affordable, which is the lowest level since February.
This trend was also reflected across the whole of the market, which otherwise showed a stable affordability picture. In July, 72% of mortgage enquiries were deemed to be affordable, which is the lowest level since June 2020. At the same time, the maximum average loan fell very slightly from £243,250 in June to £243,055 in July and the minimum average loan dropped by just 3%
Read more here: https://www.cherryplc.co.uk/industry/pressreleases/details/15989
