Mortgage seekers’ incomes jump 21% year-on-year as MMR attracts buyers with more spending power

Average combined salary surpasses £56,000, outstripping 0.8% annual wage growth.

The Q3 2014 edition of Mortgage Advice Bureau’s Mortgage Search Tracker offers the earliest indication of consumer trends by revealing mortgage seekers’ current thinking as they explore their options to get a purchase, remortgage or buy-to-let (BTL) loan.

Data from over 250,000 unique monthly online mortgage searches shows that aspiring buyers’ average incomes have jumped by 21% since Q3 2013 as borrowing appetite under MMR increasingly comes from higher earners. Affordability factors are also prompting more borrowers to look for shorter or longer term loans.

Key statistics include:

  • The average combined income of aspiring buyers increased by 21% year-on-year to over £56,000
  • The popularity of 25-29 year term mortgages has fallen away as buyers are increasingly polarised on their preferred length of term
  • Over half of all searches are now for remortgage products as homeowners look to cash in on equity gains
  • The difference in value between properties targeted by BTL borrowers and aspiring homeowners has shrunk to under £2,500.