Mortgages are at their most affordable for homeowners since
1996, according to the Council of Mortgage Lenders (CML).
CML figures show that home buyers already on the property ladder
typically needed only 10.6% of their gross income in November 2009
to cover interest payments on a new mortgage. This was the lowest
debt burden since a brief low of 10.2% 1996.
The figure compares with 14.4% in November 2008, and is the
second lowest figure since the CML started collecting data in
1974.
First-time buyers spent an average of 14.4% of their gross
income on mortgage interest in November, the lowest figure since
May 2004.
However, these buyers are still faced with having to build up a
large deposit before taking advantage of the low interest rates on
offer.
Michael Cogan, director general of the CML said: ""Home movers
in particular are experiencing a low debt burden by historical
standards.
"It is encouraging to see that mortgage interest payments are so
affordable for home movers and first-time buyers. But with
substantial deposits still needed to secure a mortgage, the market
will continue to be relatively restrained for some time to
come.
"With refinancing still unattractive or unnecessary for many
borrowers due to continuing low rates, we are now seeing a much
more house purchase-focussed market, a profile much more like the
beginning of the Noughties than its latter years."
Useful links:
How
to claim back mortgage arrears charges
Has your
mortgage been mis-sold to you?
Claims Financial
Testimonial
"I just had to put pen to paper and write to say I'm more than delighted with my settlement that you won me back from my PPI I had with Lloyds TSB. The Claim Forms were simple to fill in. It was a breeze"
Mr R Evans 11 Nov 2010