Average yearly mortgage payments drop by 21% - Mortgages - News - Moneyfacts

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Average yearly mortgage payments drop by 21%

Average yearly mortgage payments drop by 21%

Category: Mortgages

Updated: 03/04/2013
First Published: 03/04/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Typical annual mortgage costs have fallen by nearly a quarter over the past five years, according to latest research by Halifax.

Average repayments over the course of a year fell from £4,521 in 2008 to £3,571 in 2013, highlighting the impact of mortgage rates being cut significantly by lenders since the height of the credit crisis.

Additional research by Moneyfacts found that the average two-year fixed mortgage rate has reduced from 6.34% in April 2008 to 3.83% today.

In stark contrast, Halifax's research also revealed the overall cost of running a home has risen on average by £184 (2%) over the same period.

Increases to energy and water rates and higher council tax have driven up housing costs, pushing cash-strapped households to their financial limits.

Martin Ellis, housing economist at Halifax, said: "The typical costs of owning and running a home have again increased slightly over the past year, although this rise was below the general increase in the cost of living.

"Overall, the cost of owning a home has increased by 2% over the past five years, representing a significant decline in real terms. Lower mortgage payments have largely offset increases in other items of housing-related expenditure, such as the substantial rises in electricity and gas bills."

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