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
Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break
The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.
Ever wondered where the most reasonably-priced towns for families to buy are? Property company, Zoopla has identified the top 10 towns for families to live in the UK by looking at the most affordable towns, and how many people are looking in that area.
Increase in zero-deposit mortgages in 2024
22 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
23 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.
More information
Trusted by
