With interest rates having been at historical lows for over a decade it is, perhaps, unsurprising that a recent report by the Halifax has concluded that the proportion of the average UK homeowner’s income committed to paying the mortgage is currently well below the historical average of the last forty years.
In 2017 the Halifax found that the average homeowner’s mortgage payments accounted for just 29% of the average income. In 2007, pre credit crunch, that figure was 47%. If we look back further, as far as 1983, the average over the period to date has been 35%.
Of course, there are regional disparities as you might expect, with parts of London and the South East seeing up to 60% of household income swallowed up by home debt repayments whereas in other parts of the UK mortgage repayments sometimes fall as low as 15% of earnings! Unsurprisingly, areas that have not enjoyed the recent boom in house values have also seen mortgage repayments remain low.
With speculation this year that the Bank of England might be looking to raise their Base Rate in the Autumn, locking in an attractive rate now is worth considering. Many lenders are now withdrawing some of their most attractive fixed rate deals but there are still deals to be had in the market.
For an initial appraisal of what is currently available this Summer contact Mortgage Required for a no-obligation chat on 01628 507477.
Related article:
Download our Free First Time Buyers Guide
Recent posts
Almost one in five equity release mortgages are now taken out to provide financial support to family.
Buyers purchasing properties sooner
2 days ago
According to industry data, the expected wait for those looking to buy a property has dropped from just over 11 months to less than six months.
It is common for your first mortgage payment to be higher than your subsequent monthly payments for two reasons.
What to do just before you get your keys
7 days ago
Firstly, a big congratulations, you’ve now exchanged contracts! After weeks and months of waiting, you are about to move in. What should you do first?
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
29 Aug 2025
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
More information
Trusted by
