Woolwich reveals cost of servicing mortgages still at 18.6% in November

The monthly Woolwich mortgage affordability research shows the monthly cost of servicing mortgages has remained at 18.6% of borrowers’ household disposable income in November.

Annually the increase is up by 0.1 of a percentage point from 18.5% in November 2004 to 18.6% in November 2005.

The research shows average mortgage payments have increased slightly from 512 to 514 from October to November 2005. Additionally affordability in London improved this month by 0.3%, falling from 23.4% in October to 23.1% of households disposable income.

Andy Gray, head of mortgages for the Woolwich, says: “The continued stability in the cost of servicing mortgages is having a positive effect on the housing market. Home owners are generally feeling more confident and this has been seen by reports that property prices are stable or slowly increasing.”