Is it time to switch your mortgage?
According to current lending records Mortgages in the UK have reached their most affordable level in ten years.
It has been revealed that typical mortgage payments accounted for less than a third (29%) of homeowners’ disposable income in the final quarter of 2017, compared to almost half (48%) in 2007. (Source: Halifax)
Affordability since 2007 has therefore apparently been driven by historically low mortgage rates, despite the first base rate rise in ten years being last November.
Mortgagors who already have had a mortgage in place for some time and those presently preparing to take their first step on to the property ladder such as First Time Buyers will certainly benefit from continuing lower mortgage rates. Improvement in mortgage affordability has been an important key factor that has supported housing demand and helped to stimulate the modest recovery in the housing market that we are currently seeing.
The fact that mortgage payments have become a much smaller proportion of disposable income will also support a healthy housing market, with more choice and opportunity for both purchasers and borrowers.
Mortgage affordability has improved in the vast majority of areas of the UK however, there is clearly a significant North-South divide with the most affordable areas in northern Britain, and the least affordable areas in the south. However this can also often vary depending upon City and County areas of the country as well.
If you would like to look at getting a more affordable mortgage you can speak to a qualified mortgage adviser by clicking here
The above post is intended to be informative but does not constitute advice – financial, legal or otherwise. Any opinions given are the author’s own and do not necessarily reflect the views of Mortgage Finder
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE