Mortgages Most Affordable In 15 Years, Says Halifax !!

Date Published 29 August 2012



Wednesday 29th August 2012


Despite difficulties in getting new mortgages, those who succeed benefit from the lowest mortgage payments as a proportion of disposable earnings for 15 years.

According to new Halifax research, typical mortgage payments for new borrowers – both first-time buyers and home movers – take up 26% of disposable earnings, as at the second quarter of this year.

The long-term average is 36%.

Overall, mortgage payments have almost halved as a proportion of income over the past five years from a peak of 48% in Q3 2007.

Affordability is better than the long-term average in all regions. Each of the 12 UK regions has seen a marked improvement in affordability since mid-2007.

Average mortgage payments as a proportion of average disposable earnings for a new borrower have fallen most, by two-thirds, in Northern Ireland and nearly halved in Yorkshire & the Humber, and Scotland.

In Northern Ireland and Scotland, mortgage repayments as a proportion of disposable earnings stand at 20%, and at 21% in Yorkshire & the Humber.

Payments are highest in relation to earnings in Greater London (35%), the South-East (32%) and the South-West (32%).