Proportion of pay spent on mortgages falls
Share
Home owners saw a 20% fall in the proportion of their pay spent on monthly mortgage repayments in 2009, according to recent research on the subject of mortgage affordability from Woolwich.
In December 2008 home owners were spending an average of £196 out of every £1,000 of their pay each month on their mortgages. A year on this had dropped to £157.
The average monthly mortgage payment in the UK now stands at £497 compared with £607 in December 2008.
Andy Gray, head of mortgages at Barclays, says: “For the 11 million UK households who have a mortgage there has been a silver lining to the cloud of recession - a substantial reduction in payments just when they needed it most.
“For these borrowers this is a chance to save in a way they might not have been able to before, or maybe to overpay their mortgage and cut years from its life.”
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
