28 August 2012

Recent statistics from Halifax have unveiled that mortgages for new borrowers are the most affordable they have been in 15 years.

Using the standard loan-to-value ratio, payments for first-time buyers and other property owners accounted for 26% of disposable income in Q2 2012 which is down from 29% on the same time period in 2011.

Halifax’s data also shows that payments have lowered by almost 50% as a proportion of income over the past five years, which has reduced from a peak of 48% in the third quarter of 2007.

Each UK region has seen an improvement since 2007, most noticeably for new borrowers. Typical mortgage repayments have fallen by almost 50% in Wales, Yorkshire and Humber and Scotland.

Halifax Housing Economist, Martin Ellis, commented on homemove.co.uk that: “The prospect of interest rates remaining at low levels for some time yet is expected to continue to be a key factor supporting the demand for homes, helping to keep house prices around their current level during the remainder of 2012.”


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