Mortgages at their most affordable for 14 years

Mortgage affordability is at its most favourable since 1999, with mortgage repayments accounting for 27% of a new borrower's income in 2013 Quarter 2, according to research from Halifax. This is comfortably below the average of 36% recorded over the past 30 years. Mortgage affordability has improved by 21% since its peak of 48% of income in 2007. Lower house prices and reduced mortgage rates have been the main drivers behind the significant improvement in affordability. Craig McKinlay, mortgage director at Halifax, said: "The favourable mortgage affordability position is a boost for both those who already have a mortgage and those who are able to raise the required deposit to buy a home. Improved mortgage affordability has been a key factor supporting housing demand and is helping to stimulate the modest recovery that we are currently seeing.” August 23, 2013