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.
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