February 2, 2010
Mortgages Now 20% More Affordable
Homeowners in England and Wales saw a 20% drop in the proportion of their take-home pay spent on monthly mortgage repayments in 2009.
According to the latest research by Woolwich, in December 2008 homeowners across England and Wales were spending on average £196 of every £1000 of their take home pay each month on their mortgages. A year later this had dropped to £157. The average monthly mortgage payments for homeowners now stands at £497, compared to £607 in December 2008.
Andy Gray, head of mortgages at Barclays says: "For the 11 million UK households who have a mortgage there is a silver lining to the recession – a substantial reduction in mortgage payments right when they need it most. For them it's a chance to save in a way they might not have been able to before, or to overpay their mortgage and cut years from its life."
Though this is good news, it shouldn't be automatically assumed that everyone is experiencing a cheaper mortgage. Some people simply have the wrong mortgage and are oblivious to the savings they could be making if they just picked up the phone and asked a mortgage adviser whether there is a better loan out there for them.
If you are paying a lot more than £497 a month for a mortgage it might be time to do some shopping. Have a look online and see what sort of prices are on offer from mortgage lenders. Then call an independent mortgage expert and ask them to help you search the whole of the mortgage market for a loan that will save you money.
SOURCE: Barclays, 28/01/10
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