The Chinese have the best mortgage purchasing power

Ryan Bembridge

July 10, 2019

People of Chinese ethnicity have the best mortgage purchasing power in the UK based on the amount earnt, analysis of ONS data from GetAgent.co.uk has found.

They can typically afford a mortgage of nearly £129,000 with the help of average wage of nearly £28,700.

Second on the list is Indian people at £110,300, followed by white British at £98,500.

At the bottom of the list was the Bangladeshi ethnic group, who have an average salary of £17,472, which translates into only being able to spend £78,000 on a mortgage.

The calculations are based on being able to afford 4.5x of annual income on a mortgage.

Colby Short, chief executive of GetAgent, said: “The struggle faced by many millennials when getting onto the property ladder and the issue of the gender pay gap has been well documented but as this latest data shows, this gap in pay is also a problem across different ethnic groups.

“In fact, the gap between the top and bottom earning ethnic groups is far bigger than any male versus female issue.

“Of course, this gap has a direct impact on the ability for many to buy a home and in this day and age, this simply shouldn’t be the case.

“More needs to be done to level the playing field whether it be based on age, gender or ethnic background in order to ensure that everyone has the chance to become a homeowner if they wish to do so.”

Sign up to our daily email