It’s no surprise to many homeowners that mortgage repayments in the UK are the most affordable they have been for a decade but now Halifax have brought facts to prove it.
The mortgage lender’s latest price index shows that typical mortgage payments accounted for less than one third of the homeowners’ disposable income in the last quarter of 2017, compared to almost half in 2007 (48%).
This is particularly good news for first-time buyers although anyone with a large mortgage is also benefiting significantly from this historically low lending rate, brought on after the credit crunch in 2007/8.
Of course what goes down will, eventually, go up, and prudent borrowers are encouraged to make plans for future increases either by making over payments (when possible and allowed in their loan agreement) or by saving money for tighter times ahead.
Many are now predicting that the year end will see mortgage rates rising modestly in the UK. Whilst ½% or so might not seem much, it represents a relatively large increase on the Bank of England’s Base Lending Rate and it will have a detrimental effect on those with fixed or capped rate loans coming to an end.
Of course, the story is less simple than this with regional differences telling different stories across the Country. Affordability does not just depend on interest rates. It also depends on net household income and the size of the mortgage amount. The average mortgage in parts of London and the South East, where house prices are likely to be relatively much greater, is likely to be much less affordable than in parts of the North and the Midlands.
If you are considering locking in to a new rate before any increase, now’s the time to speak to our team of mortgage advisers in Maidenhead on 01628 507477.
Related articles:
8 days ago
Selling up? It’s important to make your house as appealing as possible to potential buyers. Good decorating can help with first impressions, and increase the perceived value of your property.
27 days ago
With the cost of living affecting so many of us, we have made a list of budget-friendly activities and ideas for you.
21 Jul 2023
Moving soon? It's never too early to get organised! Be prepared and avoid unwanted stress by checking out our list of tips to get you ready for moving day.
27 Jun 2023
Inflation simply put, is the increase in the price of something over time. The Office for National Statistics (ONS) tracks the prices of hundreds of everyday items and these items are updated to reflect shopping trends.
20 Jun 2023
We are often asked if it's good advice to consolidate “unsecured” debt (credit cards and loans etc) into your mortgage, the answer is, sometimes.
16 Jun 2023
When you’re looking to buy a home, and you own a car, you ideally want to know the rules on parking in the area. Parking rules can be confusing, even for the most experienced of drivers! This is why we have written this blog to help you.
6 Jun 2023
There are several potential sources you can consider when it comes to getting together a deposit to buy a property. Providing proof of the source of your deposit is a key requirement in the application process and will need to be given to both the lender and the solicitor.
26 May 2023
Mortgage Prisoners are people who are unable to switch mortgages to a better deal, despite being up-to-date with their mortgage payments.