Mortgage affordability is the best since records began

Posted in 'Mortgages' by Barry Stamp

13 December 2011

Mortgages for house movers are at their most affordable since records began, according to a statement released by the Committee of Mortgage Lenders alongside its latest data release. Figures for October 2011 show that movers now pay an average of 9.2% of income on mortgage interest, the lowest percentage since 2002.

For first time purchasers the figures aren't quite as good, with mortgage interest taking up an average of 12.3% of income, the lowest level since January 2004.

Despite apparent affordability, the mortgage market remains flat and depressed. The average first-time buyers' deposit is now 20%, which is blunting demand for those wishing to get on the housing ladder. 97% of those that do step up to the first rung are taking out repayment mortgages, compared to 83% of movers.

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