Mortgage applications up 21% in 2011

The total number of mortgage applications in 2011 was up 21.2% on 2010, according to the latest National Mortgage Index compiled by the Mortgage Advice Bureau.

Although mortgage applications fell 43.1% in December 2011 compared to the previous month, they were still 20.2% higher than the corresponding month in 2010.

The percentage of applicants choosing a fixed rate deal in December was 75.8% compared to 75.0% in November. The popularity of fixed rate products has increased over the year from 70.9% of all mortgage applications in December 2010.

The average loan size on mortgage applications in December was £137,230, compared to £140,448 in November. Over the year the average loan size was £132,747 which is 4.62% higher than the average in 2010 of £126,888.

The average LTV on mortgage applications in December was 69.8%, which was lower than the average for November of 71.6%, and also than the average for the year of 70.7%.

While the average deposit mortgage applicants put down in December was £59,375, up from £55,708 in November, and up 12.2% from December 2010.

The average age of mortgage applicants in December topped 39, which is the highest level since the Index launched, while the average salary of applicants in December was £35,352, up from £34,789 in December 2010.