Mortgage Broker Tools (MBT) said its Affordability Index, which uses data analysis based on more than 65,000 client searches, is the first of its kind offering brokers and lenders an overview of affordability calculations and the spread of loan sizes for a range of circumstances.

According to its most recent analysis the average loan requested by brokers across the whole of market in August was £210,000, to which the average minimum loan amount offered was £127,965 and the average maximum was £284,880.

As the index provides data from as far back as January of this year, it also offers an insight into how lenders managed affordability during the lockdown.

Indeed, the index revealed they reined in their affordability calculations in April and then gradually began to lend more when the reopening of the property market happened in May.

Tanya Toumadj, CEO of Mortgage Broker Tools, said: “Affordability is such an important part of placing any case and can often change the choice of lender that a broker recommends.

“So, we wanted to provide brokers with an accurate, data-driven snapshot of the latest affordability landscape to help them understand the likely borrowing potential for their clients from the outset.

“The MBT Affordability Index is a quick and easy way for brokers to see whether lenders are increasing the loan amounts they are prepared to offer, or restricting loan sizes. It also gives brokers an idea of the spread of loan sizes available to borrowers.

“This is often significant and represents a real opportunity for brokers to add value by selecting the right lender able to offer a loan amount that meets their client’s objectives.

“This takes a lot of research, of course, and is why a platform like MBT Affordability is such an important for brokers to have in their armoury.”