Mortgages best value for decade
Mortgages are more affordable than they have been in a decade and are almost twice as cheap as at the height of the crisis, new figures reveal.
Halifax figures show mortgage payments absorbed 28 per cent of a new borrower's disposable income in the final quarter of last year.
At its peak in the third quarter of 2007, the proportion was 48 per cent.
Average mortgage rates are near record lows of 3.38 per cent at the moment, according to the Bank of England, and house prices are 10 per cent below their 2007 pre-crisis peak.
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As a result, average monthly mortgage payments have fallen to just £580, which compares with the average monthly after-tax wage of £2,062, Halifax said.
Martin Ellis, housing economist at Halifax, said: "Mortgage affordability has improved significantly over the past few years as a result of falls in house prices and cuts in mortgage rates.
"This development has been a key factor supporting housing demand and is expected to remain so in 2013 as interest rates remain low."