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Mortgage Costs Are At a Record Low

Thursday, November 17, 2016 9:50:00 AM

The Council of Mortgage Lenders (CML)  say mortgages are now more affordable than they have ever been.

In September, the average homeowner - excluding first-time buyers - spent 17.7% of his or her monthly income on mortgage repayments, the CML said, where a comparison from eight years ago showed they spent 23.7% of their income on repayments when interest rates were higher.

The figures represented a historic low said the CML and this positive news should help more people to buy their own home.

Figures show that first-time buyers are spending 17.8% of their income paying their mortgages, compared with 24.7% in November 2007, which was a recent high.

The average total of a household income being spent on repayments would have been even higher in the 1970s and 80s, when interest rates were as high as 17% a year, the CML said.

This positive news from the CML come after the Bank of England's decision to cut base rates to 0.25% in August, which resulted in many lenders cutting mortgage rates further.
There are now some great mortgage deals available with two-year fixed rates now being available for as little as 0.99%.

"Mortgage affordability reached a historic low in September, for both first-time buyers and home movers, which partly reflects the re-pricing of mortgages following August's base rate cut," said Paul Smee, the director general of the CML.

"This should help turn strong appetite for home-ownership into a reality as we approach the closing months of the year."

Here at The Mortgage Brain, we agree that it is a great time to mortgage or remortgage. With excellent rates available mortgages have never been more affordable.

If you are interested in a new mortgage or looking to remortgage please contact us on 0333 340 8888 or email info@themortgagebrain.net. We will be happy to offer advice and discuss any mortgage requirements you may have.

We look forward to hearing from you here at The Mortgage Brain.


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