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Mortgages At Most Affordable In 10 Years In 2011
Mortgages were at their most affordable in ten years in 2011, as the Bank of England base rate remained at record low levels.
According to analysis of one million accounts by Barclays, monthly mortgage payments accounted for around 15.4 per cent of take home pay last year.
In September 2011, the figure fell to 15.2 per cent, the lowest level since records began ten years ago. This compares to 2008, when homeowners were spending on average 20.5 per cent of their take home pay in mortgage premiums.
Andy Gray, head of mortgages at Barclays, said: "With the cheapest ever mortgage deals offered to homeowners last year and the fiercely competitive mortgage market it stands to reason that the average monthly mortgage payment was at its most affordable level in a decade."
He added that the base rate is expected to remain at its historic low of 0.5 per cent throughout 2012. The figures from Barclays come after Halifax research revealed first time buyer affordability is now at an eight-year high.
Based on November 2011 prices, 44 per cent of all local authority districts in the UK are considered to be affordable, compared to just five per cent in 2007.
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Article date: 1/12/2012 12:00:00 AM