Mortgage interest payments almost halve - Mortgages - News |

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

Mortgage interest payments almost halve

Mortgage interest payments almost halve

Category: Mortgages

Updated: 29/06/2009
First Published: 29/06/2009

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 It is now over 6 months old so the content may be out of date.

Mortgage interest payments have fallen by almost a half over the last year, contributing to a 17% decline in the overall cost of owning and running a home.

In the 12 months to April, the average annual cost of housing fell from £8,766 to £7,298, the lowest level seen since 2006, according to research by Halifax.

The main driver behind the fall was a 47% decline in mortgage interest payments, with the average mortgage rate dropping to 3.62% in April this year, down from 5.80% a year earlier.

However, mortgage interest payments were the only expense to experience a fall.

The largest upward pressure on housing costs came from electricity and gas charges, which increased by 13% (£159) from £1,249 in April 2008 to £1,409 in April 2009.

"With mortgage interest payments declining by almost half over the past year, the annual cost associated with owning and running a home in the UK has fallen significantly," said Suren Thiru, economist at Halifax.

"Such a sizeable drop in the costs of running a home will help to ease the pressure on household disposable income, providing some welcome relief to homeowners."

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 Any products featured may be withdrawn by their provider or changed at any time.