Mortgages are now more affordable than they have ever been, according to the Council of Mortgage Lenders (CML).

In September, the average homeowner - excluding first-time buyers - spent 17.7% of his or her monthly income on mortgage repayments, the CML said.

Eight years ago, when interest rates were much higher, they spent 23.7% of their income on repayments.

The CML said the figures represented a historic low, and should help more people to buy their own home.

First-time buyers are spending 17.8% of their income servicing their mortgages, compared with 24.7% in November 2007, a recent high.

Low rates

The proportion of household income being spent on repayments would have been even higher in the 1970s and 80s, when interest rates were as high as 17% a year, the CML said.

The improvement in affordability follows the Bank of England's decision to cut base rates to 0.25% in August, which resulted in many lenders cutting mortgage rates further.

Two-year fixed rates are now available for as little as 0.99%.

"Mortgage affordability reached an historic low in September, for both first-time buyers and home movers, which partly reflects the re-pricing of mortgages following August's base rate cut," said Paul Smee, the director general of the CML.

"This should help turn strong appetite for home-ownership into a reality as we approach the closing months of the year."

If you require up to date realistic advice on Mortgages , why not speak to Brendan Brown Independent Financial Advisor. Brendan is available for appointments within all of JP & Brimelow's offices. 

M. 07764 942896

E. Brendan@brownfinancialservices.co.uk