Purchase mortgage applications in London almost doubled in 2010 compared to 2009, according to the latest Mortgage Advice Bureau/Coreco National Mortgage Index.
Although the total number of mortgage applications in 2010 was low relative to pre-Credit Crunch levels, mortgage applications were up 88.6% compared to 2009.
The average LTV on purchase mortgage applications in 2010 was 66%, down from 67.6% in 2009, while the average purchase mortgage loan size increased 18.4% from £217,419 in 2009 to £257,491 in 2010.
In 2010, 52.9% of borrowers chose variable over fixed rate purchase mortgages during 2010, although last month, 57.9% of purchase applications were for fixed rate deals, suggesting that borrowers are less confident that interest rates are going to remain at their current level during 2011.
On the remortgage side, the average LTV on remortgage applications in 2010 was 51% compared to 48.8% in 2009, while the average loan size dropped from £321,302 in 2009 to £303,795 in 2010, a 5.4% fall.
The average age of a purchase mortgage applicant in London in 2010 was 36 years 10 months, compared to 40 years in 2009.
Andrew Montlake, director of Coreco Group, said: “A lacklustre start to 2011 is likely following the softening market towards the end of 2010
