Mortgage payments eat up more of our income than they have for the last decade, so new research shows.
We may have higher wages and lower mortgage rates, yet in the last decade the percentage of incomes used to pay mortgage payments by home movers and first time buyers has increased more than 45%, so latest Moneyfacts.co.uk data reveals.
This rise in costs has been driven by an increase in average house prices, as well as the removal of mortgage tax relief (MIRAS).
The effect is that mortgage payments have eroded into our income more than in 1996.
What with increases in utility bills and higher council tax, there is no surprise in knowing that the UK is presently faced with a personal debt .
1996 saw the average first time buyer taking out a mortgage of £39,811 with a salary of £17,308 in order to get a foot on the property ladder . This meant a monthly mortgage payment of £264.84, taking 18.4% of monthly income.
In September 2006, a first time buyer needs a mortgage £110,500 on a salary of £34,216. Brits in 2006 spend 27% of their income on average monthly mortgage repayments of £763.46.
Mortgages have increased from 16.5% of monthly salaries to 24% in the last month alone.
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We Are Facing A Mortgage Squeeze
Wed, 04 Oct 2006
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