Although there is some evidence of a softening in property prices, it is clear buyers are taking on a larger debt burden in relation to the value of their property.
The average loan-to-value ratio being sought on Moneyextra by first-time buyers in January 2005 was 84.6 per cent. In January 2004 it was 81.75 per cent.
A more substantial rise, albeit from a lower base, is also clear in the LTV figures for movers: 66.02 per cent in January 2005, up from 57.6 per cent in January 2004.
Average property values being searched for mortgages on Moneyextra’s website comparison tool fell in January to £202,6511, their lowest level since September 2004.
Property values being sought by first-time buyers fell to £147,742, down from £152,660 on the previous month; average values being sought by movers were also down, falling to £235,493 from £248,865.
The average mortgage being searched for by first-time buyers eased down 3.3 per cent between December and January to £124,996 while the average mortgage being sought by movers fell 3.5 per cent month-on-month to £155,470.
The average value of loans actually completed via Moneyextra Mortgages in January was £133,463.81 while the average value of loans completed over the past 12 months (Feb 04-Jan 05) rose to £112,824.73, up from £109,819.10 for 2004.
The most popular mortgage lender in the month of January was also the most popular for the preceding 12 months — Nationwide Building Society. Three of the top five places in the top ten over the period February 2004-January 2005 were held by mutual lenders.
