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First Time Buyer Mortgage Payments Most Affordable Since 2004
Mortgage payments were at their most affordable in eight years in October, as first time buyers continue to benefit from historic low interest rates.
Figures from the Council of Mortgage Lenders (CML) show monthly payments now account for just 12.3 per cent of average monthly income for first time buyers, the lowest percentage since January 2004.
The situation is also improving for those looking to move up the property ladder, with movers only paying 9.2 per cent of their income on mortgage payments. According to the CML, this is the lowest level recorded since records began in 2002.
Much of the driver for this is the Bank of England's historic low interest rate, which has sat at 0.5 per cent since March 2009.
CML director general Paul Smee added: "Despite the fall in lending in October, it is possible that we will see signs of increased activity by first time buyers in the early months of next year, as we approach the end of the government's stamp duty concession at the end of March."
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Article date: 12/15/2011 12:00:00 AM