Research from Barclays Capital shows that mortgage payments in England and Wales averaged £494 a month or 15.4 per cent of home owners' take-home pay last year.
This makes deals at their most affordable for a decade, falling from a peak in 2008 when monthly mortgage bills accounted for more than a fifth of take-home wages.
The data also suggested that most homeowners could manage with the Bank of England raising the base rate from its historic 0.5 per cent low.
It found that 83 per cent of homeowners would have the necessary flexibility should interest rates, or their circumstances, change.
Just under three-quarters of those studied said they had a plan in place for when interest rates started to rise, with around a third of these planning to cut 'lifestyle' spending, including clothes, holidays and eating out, to offset increases..
The latest Barclays Capital credit conditions survey found lenders were planning to launch more innovative deals, particularly for those who have smaller deposits.
“This could help first-time buyers who have found themselves trapped in the rental sector,” said Adam Offer, managing director of leading south west estate agents, Besley Hill.
No comments:
Post a Comment