FTB mortgage payments most affordable for eight years

by Aaron Strutt

Dec 09 2011

The persistence of low interest rates has helped make monthly mortgage payments for first-time buyers the most affordable for nearly eight years, according to figures released from the Council of Mortgage Lenders (CML).

The CML says that the average first-time buyer now has a typical deposit of 20% and mortgage affordability is improving.

Aaron Strutt, a broker at Trinity Financial, says: “If you qualify for an interest only mortgage the CML says that it will typically consume 12.3% of income, the lowest level since records began in 2002. For those taking a capital repayment mortgage, the CML previously estimated that this would represent about 29% of your income, considerably more than interest only.

“If you have a 25% deposit and a good credit history you can qualify for an interest only mortgage and the rates are particularity low. That said, more lenders have been increasing the cost of their mortgages this week and Accord, Halifax and Leeds Building Society have all raised rates, typically by 0.15%."

9 December 2011