The percentage of enquiries considered to be affordable has dropped from 80% in January to just 73% in August, according to the latest Mortgage Broker Tools Affordability Index.

Over the same period, the Halifax House Price Index records that the average property price has increased by more than £11,000 – rising 4.4% from £251,832 in January to £262,954 in August. 

This means that whole of market mortgage research has become more vital as rising property prices have presented fewer affordable loan options, says Mortgage Broker Tools.

However, the criteria search platform adds that, in 21% of cases it studied, the loan amount requested by a borrower is less than 5% away from being matched with an affordable option.

The firm says by considering a wider pool of lenders, many borrowers could be within touching distance of achieving the loan size they need to buy the property they want.

Mortgage Broker Tools chief executive Tanya Toumadj says: “The strength of the property market over the course of 2021 has been well documented and it has naturally made it harder for buyers to afford a home of their choosing as they have needed to stretch their borrowing further to keep up with rising prices. 

“As a consequence, the latest MBT Affordability Index shows that more mortgage enquiries are considered to be unaffordable than at the beginning of the year.

“However, buyers and brokers shouldn’t lose hope. 

“Our data also shows more than a fifth of these cases that are considered unaffordable are less than 5% away from there being a suitable affordable option. 

“So, there are opportunities for many borrowers to secure the loan they need, as long as they work with the best lender for their circumstances.

“With this in mind, it’s never been more important for brokers to carry out comprehensive and accurate affordability and criteria research before starting an application as this can prove the difference between a customer securing the property they want or being left disappointed.”