Some mortgage lenders have reduced the loan size they offer to customers by 19%, according to analysis by Mortgage Broker Tools (MBT).

Data from the broker research platform has shown that the average minimum loan size available to borrowers fell from £141,224, during the eight months between February and September in 2022, to £114,776 during the same length of time between October 2022 and May this year.

This figure represents a fall of 19% in the average loan size offered by some lenders, which MBT said demonstrates a “softening” in mortgage availability over recent months.

MBT CEO, Tanya Toumadj, suggested it is “unsurprising” that the combination of increased living costs and rapidly rising rates have put a squeeze on mortgage affordability.

Analysis of MBT data, which is based on thousands of real mortgage enquiries, shows that some lenders have reduced the average loan size they offer customers by nearly 20%,” Toumadj said.

“However, our data also shows that during this same period, there has been little change to the average maximum loan size available, meaning there are some lenders that continue to offer good affordability options.

“In this environment, brokers can’t take affordability for granted. The market is becoming more complex and researching the best options for customers from a wide range of lenders could make the difference between whether or not they are able to achieve their goals.”

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