Mortgage affordability hits record low

Mortgage affordability hits record low

Todays other news
There are some locations offering incentives to British investor buyers...
The market is strong ahead of the April stamp duty...
The PBSA analysis has been undertaken by Knight Frank...
The analysis has been done by Bond Wolfe...


It is now more affordable than ever before to take out a mortgage, new figures from the Council of Mortgage Lenders (CML) show.

A price war between lenders means that borrowing rates have never been cheaper, making it the perfect opportunity for homebuyers or anyone remortgaging.

The amount borrowers are paying as a percentage of their household income to service capital and interest rates reached a historic low this month for both first-time buyers and home movers, at 17.8% and 17.7% respectively.

Affordability metrics for first-time buyers saw the typical loan size fell to £133,000 in September from £136,400 in August.

The average household income also decreased slightly from £41,000 in August to £40,200 in September.

This meant the income multiple was slightly down from 3.56 to 3.53.

“Mortgage affordability reached an historic low in September, for both first-time buyers and home movers, which partly reflects the re-pricing of mortgages following August’s base rate cut,” said Paul Smee, director general of the CML. “This should help turn strong appetite for home-ownership into a reality as we approach the closing months of the year.”

Record-low borrowing levels has helped to ensure that the UK housing market remains resilient in the face of adversity from the vote for Brexit and the subsequent political turbulence.

David Brown, CEO of Marsh & Parsons, said: “Low interest rates have improved affordability for buyers and helped drive activity for those who can get great deals. Therefore, while uncertainty remains about the outcome of Brexit negotiations, confidence in property remains high for hopeful homebuyers, investors and sellers.” 

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Property Investor Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
The agent earned his stripes working for the respected Stacks...
We wish all Property Investor Today readers a successful 2025....
Property Investor Today is taking a short break...
The cottage just on the market is next to one...
Spain’s draconian new tax is already spooking British investors...
The Budget has forced a revision of forecasts for the...
Prices and sales volumes will grow in 2025 despite the...
Recommended for you
Latest Features
There are some locations offering incentives to British investor buyers...
The market is strong ahead of the April stamp duty...
Sponsored Content
As the property industry shifts towards sustainable practices, Inspired Property...
Are you concerned about rising interest rates and their potential...
In the ever-evolving landscape of property investment, staying ahead of...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here