Time to Get a Mortgage to Buy a Leicester Home?

Mortgage affordability has boomed over the last decade as loan repayments currently take up under a third of the average homeowner’s disposable income.

According to new figures, only 29 per cent of take-home pay earned by a typical person had to be spent on making mortgage repayments during the last quarter of 2017. This is well below the long-term average of 35 per cent, according to new Halifax figures, and significantly less than the 48 per cent peak experienced in 2007.

Halifax’s mortgage director, Andy Bickers, said this news marked ‘a real boost’ which will be appreciated by people who already have mortgages and those who are making their first steps in a journey of home ownership.

Affordability has improved significantly in the UK’s northerly regions, although it is still over the long-term average for the country in some more southerly areas.

The increase in affordability has happened despite a three per cent upturn in house prices over the last year and has been prompted by lower mortgage rates. These are still well below the rates experienced during 2007, despite the Bank of England announcing a base rate rise in November.

Another contributing factor to the boost in affordability levels is the high rates of competition which exist within the current mortgage market. This has led to significant affordability improvements in most local authority districts over the last ten years.

Northern Ireland has experienced the largest fall in the percentage of take-home pay required to make mortgage repayments. Figures here have gone down to 19 per cent from 63 per cent, largely because property prices have fallen by almost half (44 per cent) over the past decade.

In order to ensure you are making the most of the affordability on offer, check that you have found the cheapest and best option for you by taking professional mortgage advice and comparing deals.

If you want to start your property adventure or simply check that you are getting the best deal for you, we can put you in contact with one of our recommended independent mortgage advisors. This impartial advice can be vital in securing the highest level of affordability and helping you to realise your Leicester property dream.

To book an appointment with one of our independent advisors, simply give us a call on 0116 254 4555 or 0116 254 4543 or email us at sales@keywest-estateagents.co.uk.