Mortgage affordability at five year high - 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.

Mortgage affordability at five year high

Mortgage affordability at five year high

Category: Mortgages

Updated: 14/01/2010
First Published: 14/01/2010

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 It is now over 6 months old so the content may be out of date.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 buyers in November had to use less of their income to cover their mortgage interest than at any time for more than five years, according to the latest figures from the Council of Mortgage Lenders (CML).

Home movers in particular were found to be experiencing a low debt burden by historical standards, typically needing only 10.6% of gross income in November to cover mortgage interest payments, down from 11.1% in October.

Other than a brief low of 10.2% in the middle of 1996, it is the best affordability figure reported for home movers since the CML started recording such data in 1974.

The debt burden on first time buyers also reduced, with 14.4% of gross income needed in November, down from 15.1% in October and the lowest reported since May 2004.

"It is encouraging to see that mortgage interest payments are so affordable for home movers and first time buyers," said CML director general, Michael Coogan.

"But with substantial deposits still needed to secure a mortgage, the market will continue to be relatively restrained for some time to come."

Compare first time buyer mortgages



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 Any products featured may be withdrawn by their provider or changed at any time.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

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

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.
 
Close