Tightening mortgage affordability could put the brakes on a remortgage boom, according to the latest Mortgage Broker Tools (MBT) Affordability Index.

Only 78% of the remortgage cases processed through the platform were considered to be affordable in January, the lowest level since July 2020, and a fall from 85% in November last year. 

However, while this number has fallen, MBT says its index continues to show a wide spread in the affordability available to remortgage customers, with the average maximum loan available being £253,000 and the average minimum loan available dropping to £108,216 —  leaving a difference of nearly £145,000.

Mortgage Broker Tool CEO Tanya Toumadj says: “There has been a lot of talk of a remortgage boom this year, but our data shows that fewer remortgage enquiries are considered affordable than at any time since July 2020. 

“This could be due to lenders tightening their calculators, customers experiencing a change of income or hoping to increase their borrowing, or a combination of all three. What is clear is that full research, using a comprehensive and accurate affordability platform is vital if brokers want to give their clients the best chance of meeting their objectives and making the most of the potential remortgage boom.”