The index is designed to provide brokers and lenders with an up-to-date snapshot of lender affordability calculations.
Mortgage Broker Tools (MBT) has launched the first ever mortgage affordability index, according to the company.
The index is designed to provide brokers and lenders with an up-to-date snapshot of lender affordability calculations and the spread of loan sizes available for a range of different circumstances.
Furthermore, the system uses data analysis by MBT Affordability based on more than 65,000 client searches.
The average loan size requested by brokers across the whole market in August was £210,000, to which the average minimum loan amount offered was £127,965 and the average maximum was £284,880.
Tanya Toumadj, chief executive at Mortgage Broker Tools, said: “Affordability is such an important part of placing any case and can often change the choice of lender that a broker recommends.
“So, we wanted to provide brokers with an accurate, data-driven snapshot of the latest affordability landscape to help them understand the likely borrowing potential for their clients from the outset.
“The MBT Affordability Index is a quick and easy way for brokers to see whether lenders are increasing the loan amounts they are prepared to offer, or restricting loan sizes.”
