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%).