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
Increase in zero-deposit mortgages in 2024
2 days ago
There was a 32% increase last year in 100% loan-to-value (LTV) mortgages which are mortgages that require zero deposit. According to a recent report by chartered accountants and business advisers, Lubbock Fine, the reason behind this is buyers simply struggling to save enough for a deposit.
Average savings by age in the UK
3 days ago
Many people are quite private when it comes to what is in their bank account. In this short blog, we look into what Brits have saved by age group.
Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.
Data shows landlords could miss out on green mortgages due to expired energy performance certificates.
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
Pros and Cons of Equity Release
20 May 2025
Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.
Your House Viewing Checklist
19 May 2025
It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.
Half of over 60s predicted to benefit from accessing housing wealth through Equity Release
16 May 2025
There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish.
More information
Trusted by
