Affordability now highest for 10 years

Mortgage affordability has hit its best level for 10 years, says Barclays.

In an analysis of more than one million customers’ accounts, it found that on average, people spent 15.4% of their take-home pay at the end of December 2010 to cover their monthly mortgage payment, the lowest level in 10 years.

Andy Gray, head of mortgages at Barclays, says: “It stands to reason that with interest rates so low, mortgage affordability is at its best in a decade, but it is crucial that home owners are not complacent.

“Those who are not already thinking about their mortgages certainly need to be, to ensure they have a contingency plan when interest rates start to increase.”