SALES NEWS: Cheaper mortgage rates help make housing affordable
The Halifax says buying a house is no more expensive for many people now than in 2015 – despite house prices having risen around seven per cent on average since that time.
This is because while prices have risen, two other factors have come in to play.
Firstly, mortgage costs over the same period have fallen thanks to last year’s further re-duction in the Bank of England base rate and secondly, greater competition in the mort-gage market has produced cheaper deals for borrowers.
The Halifax figures are for what it calls the ‘typical’ buyer – one who sells their home to ‘move up the ladder.’ It is based on having a 30 per cent deposit on the property they buy.
By analysing average income figures from the government, the Halifax says a typical owner who still has a mortgage now spends 30 per cent of their take-home pay on mort-gage repayment each month – that is the same as in 2015 and a slightly smaller propor-tion than 10 years ago.