In fact 2012 had a great start as the total number of mortgage applications in January showed a strong increase from December 2011, bouncing back 52.7%.
The average loan to value on mortgage applications for purchases remained steady at 72% in January 2012, compared to last month and also January 2011.
The average deposit put down by mortgage applicants in January 2012 was £56,167, down slightly from £57,088 in December but up 7.4% on the same period in 2011 (£52,284), according to the data.
Similarly, the average purchase price in January stood at £194,512, which was up 7.77% from January 2011 (£180,486) and up 0.93% from £192,726 in December.
The average loan size on purchase mortgage applications rose to £138,345 in January, up from £135,638 in December and £128,202 in January 2011.
While average incomes of purchase borrowers increased only slightly from £35,288 in December 2011 to £35,327 in January, they have risen 5.81% since January 2011.
The percentage of applicants applying for fixed rate deals in January 2012 was 72.2%, down from 75.8% in December and 75% in January 2011.
Affordability was up very slightly on December 2011 as, despite the average annual income to purchase price ratio rising to 18.5% from 17.9% in January 2012, the average loan amount to annual income ratio dropped from 26% in December to 25.5%, as a result of the average deposit to annual income ratio increasing from 61.8% to 62.9% in January.
Year-on-year rates have fallen, and the average rate on a two-year fixed rate deal in January 2012 was 4.27% compared to 4.4% in January 2011. It is the same story for three-year fixed rates (4.53% in January 2012 compared to 4.99% last year), and five-year fixed rate deals (4.61% this year versus 5.33% last year).
However, the average two-year tracker deal was slightly higher (3.5% as opposed to 3.47% in January 2011).
The number of mortgage products available through intermediaries in January 2012 was 6,517, down from 7,149 in December 2011 but up year-on-year from 5,410 in January 2011.
Brian Murphy, head of lending at Mortgage Advice Bureau, said “The new year has started comparatively positively in spite of the generally negative economic situation and low levels of consumer confidence, as we have once again witnessed an increase in both purchase and remortgage borrowers against the same period twelve months ago.
“Fixed rates remain the product of choice for the majority of borrowers with almost three quarters of purchasers and more than two thirds of remortgage customers fixing their mortgages.
“Overall mortgage product numbers actually reduced further during January from December but although the number of deals typically available to intermediaries has reduced to around 6,500, they remain more than 20% ahead of the same period in 2011.
“Although overall numbers of products slipped back a little, more lenders have entered the high loan to value arena with further deals being offered at 90% and even 95% of a property’s purchase price or value.
“This is good news for prospective first-time buyers and for those home movers with low levels of equity as the perception of many potential borrowers is that mortgages are only available to those with a 20% or more deposit.
“Expectations for 2012 are for a housing market broadly similar in size to 2011 with activity levels remaining subdued relative to historic levels but, with some increase in appetite being shown amongst a number of lenders to help aspiring buyers into the market the outlook is generally more positive.”
