Mortgage affordability: How does your region fare? - What Mortgage

Mortgage affordability: How does your region fare? – What Mortgage

The affordability of mortgages in the UK varies widely by region. Across the UK as a whole, mortgage holders pay just under 30% of disposable earnings on mortgage repayments. In London, however, this number is just under 50%. Scotland and Northern Ireland feature the most affordable mortgages, with homebuyers paying under 20% of average earnings on repayments. Looking at geography in more detail, Copeland, Cumbria residents have the most affordable mortgages (paying only 13% of earnings), while Hackney residents pay the most (61%).

Key Takeaways:

Data has shown that the biggest spenders in proportion to their repayments are Londoners when how much owners pay for their mortgages is considered to how much they earn.
Many borrowers in London and the East End were paying just under half of their earnings on the loan for their homes.
The good news for first time buyers, homeowners and a boost to the property market is that national affordability for property has remained flat.

“The affordability of mortgages has remained stable across the UK over the last ten years despite soaring house prices and interest rate rises, a report by Halifax has revealed.”