Mortgages most affordable in more than decade
By Denise Allen - 02 September 2012
The Halifax Affordability Review shows typical mortgage payments for new borrowers - both first-time buyers and home movers - at the long-term average loan to value ratio stood at 26% of disposable earnings in the second quarter of 2012.
There has been a continued fall in payments relative to earnings over the past year from 29% in Q2 2011, taking this measure further below the long-term average of 36%.
Overall, mortgage payments have nearly halved as a proportion of income over the past five years from a peak of 48% in Q3 2007.
Lower house prices and reduced mortgage rates have led to a significant improvement in housing affordability for those able to fund the necessary deposit to enter the market over the past five years. As a result, mortgage payments for a typical new borrower currently account for the lowest proportion of earnings for 15 years.
For further information contact Beresfords Mortgage Services on 0800 389 9986.