Mortgages are now more
affordable than they have ever been, according to the Council of
Mortgage Lenders (CML).
In September, the average homeowner - excluding first-time buyers -
spent 17.7% of his or her monthly income on mortgage repayments,
the CML said.
Eight years ago, when interest rates were much higher, they spent
23.7% of their income on repayments.
The CML said the figures represented a historic low, and
should help more people to buy their own home.
First-time buyers are spending 17.8% of their income servicing
their mortgages, compared with 24.7% in November 2007, a recent
The proportion of household income being spent on repayments would
have been even higher in the 1970s and 80s, when interest rates
were as high as 17% a year, the CML said.
The improvement in affordability follows the Bank of England's
decision to cut base rates to 0.25% in August, which resulted in
many lenders cutting mortgage rates further.
Two-year fixed rates are now available for as little as 0.99%.
"Mortgage affordability reached an historic low in September, for
both first-time buyers and home movers, which partly reflects the
re-pricing of mortgages following August's base rate cut," said
Paul Smee, the director general of the CML.
"This should help turn strong appetite for home-ownership into a
reality as we approach the closing months of the year."
If you require up to date realistic advice on Mortgages , why not
speak to Brendan Brown Independent Financial Advisor. Brendan is
available for appointments within all of JP & Brimelow's
M. 07764 942896