Mortgages becoming more affordable - 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.

Mortgages becoming more affordable

Mortgages becoming more affordable

Category: Mortgages

Updated: 10/09/2009
First Published: 10/09/2009

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 It is now over 6 months old so the content may be out of date.

Mortgages continue to become ever more affordable, accounting for just 29% of an individual's disposable earnings in August.

According to the Halifax, the proportion of disposable earnings devoted to mortgage payments has fallen significantly over the past 21 months.

Typical mortgage payments for a new borrower have fallen from a peak of 48% of average disposable earnings in the third quarter of 2007 to 29% today.

Notably, mortgage payments relative to earnings are now below the long-term average of 35% recorded over the past 25 years.

Meanwhile, house prices have continued their recovery, rising by 0.8% in August, the second successive monthly increase.

It means the average price of a home now stands at £160,973, broadly similar to the level seen at the end of last year.

"Demand for housing has increased since the start of the year due to better affordability and low interest rates," said Martin Ellis, housing economist at Halifax. "This, together with low levels of property available for sale, has boosted house prices over the last few months."

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 Any products featured may be withdrawn by their provider or changed at any time.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