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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 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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