September 7th, 2017
If you’re thinking of applying for a mortgage, there’s never been a better time to apply – with the rate of mortgage approvals secured by brokers now close to 90%.
Figures released by the Intermediary Mortgage Lenders Association (IMLA) have revealed that, during the second quarter of 2017, 88% of mortgage applications made through brokers led to offers.
The figures are up 13% from 75% in the second quarter of 2016, representing the highest brokers success rates since the IMLA’s Mortgage Market Tracker was launched at the start of 2016.
CMME have compared this to their own figures of which 92.8% of mortgage applications led to offer in the second quarter of 2017 and 92.4% in 2016, showing a slight increase.
Gross mortgage lending in general for the period reached £60.3bn, a 3% increase quarter on quarter and a 6% increase year on year.
The figures indicate that, despite the current uncertainty in the political and economic climate as a whole, the mortgage market is retaining its strength and stability, making a good time for buyers to invest.
Peter Williams, Executive Director of IMLA stated: “While the second quarter of 2017 was dominated by political speculation and campaigning, any resulting uncertainty was not enough to send the mortgage market and the determination of aspiring home owners off their course.
“The percentage of successful applications continued to grow across the board, a testament to the ability of intermediaries to match consumers with suitable products in what is an increasingly complex marketplace.
Brokers are optimistic that these positive trends will continue, with 96% of the brokers surveyed stating they felt confident about the future of the mortgage market.
Peter continued: “With house price rises softening and easing affordability pressures, borrower demand and lender supply remains unwavering heightened by increasingly competitive residential and buy-to-let LTV pricing.
“Greater choice means that, for intermediaries, it is perfectly possible to match a wide range of aspiring homeowners and movers to suitable finance without compromising on rigorous assessments of borrower capacity to service their mortgage underpinning the market.”
Overall, the percentage of offers resulting in completions has grown from 75% in the second quarter of 2016, to the 81% in the second quarter of 2017.
And it’s particularly good news for first time buyers, with 88% of applications coming to offer in the second quarter of 2017, compared to 71% in the second quarter of 2016. This, coupled with low interest rates, makes it a great time for first time buyers to take their first steps on the property ladder.
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