Mortgages in 2011 were the ‘most affordable’ on record
Mortgages in 2011 were the most affordable on record according to a Barclays’ poll of UK home-owners.
The bank conducted analysis of more than one million customers’ accounts and found that, on average, people paid out 15.4 per cent of their take-home pay last year to cover monthly mortgage payments. This is compared to 20.5 per cent in 2008, when it reached its highest point. The lowest point since records began was reached in September 2011, when the average mortgage payment fell to 15.2 per cent of the average take-home pay a month, equating to around £488.
The poll found that 83 per cent of consumers have room for manoeuvre if their circumstances or interest rates change and 64 per cent found mortgages were more affordable, compared to 52 per cent this time last year.
Lenders offering cheap mortgage deals last year helped make home-owners’ monthly mortgage payments in 2011 the most affordable for a decade, according to Barclays. Lenders are urging home-owners to ensure they keep their mortgage repayment levels under review so they won’t be caught out when interest rates increase.
Andy Gray, head of mortgages at Barclays, said: “With the cheapest ever mortgage deals offered to home-owners last year and the fiercely competitive mortgage market, it stands to reason that the average monthly mortgage payment was at its most affordable level in a decade.
“However, Barclays is urging home-owners not to be complacent with this affordability and to act early on in 2012 to secure good deals on mortgages, as they may be able to cut their monthly mortgage payments further.”
