Home affordability improves markedly - Mortgages - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Home affordability improves markedly

Home affordability improves markedly

Category: Mortgages

Updated: 20/04/2009
First Published: 20/04/2009

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 It is now over 6 months old so the content may be out of date.

Home affordability has improved significantly in the past eighteen months, with falling houses prices and mortgage rates key to making the market more accessible.

Nationally, typical mortgage payments for a new borrower equate to 31 per cent of average disposable earnings; between July and September in 2007, that average reached a high of almost half (48 per cent) of disposable income.

The research comes from Halifax, which also said mortgage payments relative to earnings are currently below the 25 year average of 37 per cent.

Affordability has actually increased in all 12 regions of the UK since the third quarter of 2007. The biggest percentage falls in average mortgages payments as a proportion of average disposable earnings have been in London (from 56 per cent to 34 per cent) and Northern Ireland (63 per cent to 37 per cent).

Property is most affordable in the regions of Yorkshire & Humber, North West and Scotland, where the ratio stands at a lowly 26 per cent.

Martin Ellis, housing economist, said that the combination of declining house prices and the cut in interest rates had been largely responsible for making housing more affordable than it has been in seven years.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.

Mortgage rates at fresh lows – but it may not last

Average fixed mortgage rates continued to fall this month, however much of this could be a technical adjustment rather than an indication of ongoing rate cuts – which means it may be worth switching to a new fixed rate deal sooner rather than later.
 
Close