This is according to the most recent National Mortgage Index from mortgage broker Mortgage Advice Bureau.
Using data from more than 500 brokers and 700 estate agents, the National Mortgage Index found that although the number of mortgage applications in April was down 13% on March, activity is still strong and year-on-year figures are up 16%.
Despite increases to lenders’ SVRs and tightening criteria as we move into the second quarter, MAB believes that affordability remains good with average annual income as a percentage of loan value increasing just slightly to 24.4% from 24.3% in March.
In the past 12 months the average deposit on applications for purchase has increased 18% to £61,537 in April 2012, and the average income of borrowers making applications is up 7% to £35,815. At the same time the value of the average mortgage application is up 19% to £148,437 and the average purchase price has increased 20% to £211,536 in April 2012.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “The month-on-month growth in mortgage applications we’ve seen this year has come to an end, but the mortgage market is still stronger than it was this time last year.
“Despite the uncertain economy and lenders withdrawing upfront discounted deals, borrowers are still putting their confidence in the market.
“The percentage of applicants seeking to protect themselves from further rate rises by applying for fixed rate deals remains high at 79%, but overall affordability remains good. There may be fewer products available in coming months but a good whole of market mortgage broker will be able to find the best deals currently available.”
