Mortgages most affordable in a decade, says Halifax
UK mortgages have reached their most affordable level in a decade, Halifax research concludes.
As of the fourth quarter of 2017 mortgage payments accounted for less than a third or (29%) of homeowners’ disposable income, compared to almost half (48%) in 2007.
Andy Bickers, mortgage director at Halifax, said: “This is a real boost for both those who already have a mortgage and those preparing to take their first step on to the property ladder.
“Improved mortgage affordability has been a key factor supporting housing demand and helping to stimulate the modest recovery that we are currently seeing.
“In recent months we have seen the number of first-time buyers and homemovers purchasing a home with a mortgage bounce back towards 2007 levels, and mortgage payments becoming a much smaller proportion of disposable income across most of the country will also support a heathy market with more choice and opportunity for buyers/borrowers.”
Mortgage payments are highest relative to incomes in Greater London, (45%), South West England (40%) and South West England (34%).
They are cheapest in Northern Ireland (19%), Scotland, and the North of England (both 20%).
The most affordable local authority is Copeland in the North West, where mortgage payments account for just 15% of incomes.