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:
Download our Free First Time Buyers Guide
Recent posts
Homebuying reform to cut homebuying times by around four weeks, and save first-time buyers around £650, says the government.
Buying your first home is a huge milestone, but it can also be a complex process. There are several factors a first-time buyer should consider before making an offer on a property, including understanding the difference between leasehold and freehold and checking council tax bands.
We’ve detailed some questions you can ask your estate agent to help you make an informed decision.
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Signs it's time to remortgage
2 days ago
Remortgaging means switching to a new mortgage deal. This will either be with your current lender or a new one.
Getting advice and moving to a new deal when the time is right can mean lower monthly mortgage payments, better interest rates, or releasing equity from your property.
Here are some signs it may be time to remortgage.
According to Nationwide Building Society’s latest House Price Index, house prices dropped 0.6% month on month in May – the first monthly decline this year.
Most Affordable UK Spots for First-Time Buyers
19 May 2026
Research from Lloyds identifies the most affordable areas in the UK for first-time buyers to be able to get onto the property ladder.
On Wednesday, 13th May, King Charles delivered his speech at the House of Lords, outlining the government’s plans for the upcoming year.
Here is a summary of the housing and energy/environment points.
From 18th May 2026, Halifax (part of Lloyds Banking Group) is launching a ‘£5k Deposit mortgage’ to help first-time buyers get onto the property ladder sooner.
More information
Trusted by
