The proportion of disposable income dedicated to mortgage payments is now at its most favourable for 12 years, new Halifax figures show.
It is believed that the trend is down to lower house prices and mortgage rates, which have declined from 5.84 per cent in 2007 to around 3.85 per cent in the present day.
However, during the same period, the average deposit needed from buyers has increased by five per cent between the third quarter of 2007 and the second quarter of 2011.
Martin Ellis, housing economist at Halifax, commented: "The improvement in affordability has been an important factor supporting housing demand this year.
"With the prospect of continuing low rates for some time yet, affordability is likely to remain favourable."
Statistics show that mortgage payments account for the lowest proportion of disposable earnings in Scotland, Yorkshire and the Humber and the north-west. |
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