The number of mortgage applications which were successfully converted into formal offers has hit a three-year high, according to reports from brokers.
Analysis of the first three months of this year also revealed the number of offers made to borrowers applying for specialist mortgages were also at record highs.
Indeed, between January and March 2019, mortgage brokers were able to convert more than 89% of applications into offers which is the highest percentage recorded since these records began in 2016.
The figures, which were released by the Intermediary Mortgage Lenders Association (IMLA), which represents mortgage brokers, reveal the number of successful applications have soared from 76% before the EU referendum took place.
According to Kate Davies, executive director of IMLA, this latest data provides further evidence the mortgage market was working well for the large majority of people in the UK.
“The share of loan applications that brokers are able to turn into offers for customers is at a three-year high, supporting the view that intermediaries are doing an effective job for significant numbers of homebuyers and other mortgage customers,” she said.
Specialist mortgages
Growth in the number of successful specialist mortgage applications was also flagged up by IMLA as ‘encouraging’. Specialist mortgages, according to IMLA, are any loans which are not straightforward products for movers, remortgagers, first-time buyers or buy-to-let landlords.
It said borrowers who require these kinds of mortgages – which can include the self-employed, for example – who tend to be considered more risky and have been labelled as ‘non-prime’, have struggled to secure funding since the financial crisis.
Yet, IMLA said the need for quality specialist products to meet these customers’ needs remained.
Davies said: “It’s good to see that brokers and lenders are finding ways to secure more loans for these niche borrowers.”
Feedback from brokers revealed a healthy flow of specialist mortgages in the first three months of 2019 and the number of applications leading to an offer were at a three-year high. The number of completions was also strong for this sector, at 56%.
Brexit
The UK’s exit from the EU was also considered as part of the analysis, with brokers revealing Brexit had not had a harsh impact.
Davies said: “The mortgage market is not immune from the current Brexit chaos – but it’s keeping calm and getting on with the business of helping people finance their home purchases.
“High quality advice will always be important – whatever the state of the economy and the political climate.”
