UK’s mortgage costs hit record low

UK’s mortgage costs hit record low

Mortgages for UK property are now more affordable than they have ever been before, the Council of Mortgage Lenders has revealed.

Recently released figures for September show the average homeowner, first-time buyers not included, spent 17.7% of their monthly income on repaying their mortgage.

Fund to speed up housebuilding launched

This represents a decrease from 23.7% in 2009 when interest rates were a lot higher and should give a lot more people the opportunity to make the first steps onto the property ladder.

Paul Smee, the director general at CML, said: “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.”

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

However, “the days of the ultra-cheap mortgage could be numbered”, said the BBC’s personal finance correspondent Simon Gompertz.

When buy-to-let turns on you, give build-to-rent a chance

The price of fixed swap rates, which was already on a slight increase, has made another jump up since Trump’s election to become the next president of the United States. Gompertz says: “”Part of a dramatic shift in expectations about interest rates if the president-elect delivers on his promise to double the growth rate of the US economy.”

Additionally, figures from the Office for National Statistics that were released earlier this week, showed a house price increase of 7.7% in the 12 months to September, the same as one month prior.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT