As of August 2017, the average mortgage in the UK is an astonishing £121,678. Rising house prices and a drop in the number of home loans has caused the UK to have record per household mortgage debt. This environment is fueled by larger loans and longer repayment periods. The first-time home buyer is actually borrowing at over three and a half times their income. With interest rates expected to rise, it could become even harder for homeowners to pay off their mortgages. Those with outstanding mortgage debt and variable rate loans should expect their payments to eventually go up.
Key Takeaways:
- Housing prices keep increasing yearly, from rent payments to mortgages
- As wages stagnate, people must borrow more; on average, 3.63x times their income.
- 35% of households in the UK have no savings, so it’s harder to get loans
“The October Money Statistics, produced by the Money Charity, have revealed that the average outstanding mortgage in the UK stood at an eye-watering £121,678 for the month of August, in 2017.”
Read more: http://www.voice-online.co.uk/article/outstanding-mortgages-hits-all-time-high-uk