Mortgage affordability in October reached its lowest level in eight years, data from the Council of Mortgage Lenders (CML) shows.
This was primarily due to low interest rates, as monthly payments now account for 12.3 per cent of income, making it the lowest level since January 2004.
However, although payments have fallen, deposit requirements for borrowers are taking their toll on lending activity.
In October, 44,500 loans for house purchases were advanced, marking a fall from 48,200 in the same month of last year.
CML director-general Paul Smee commented: "It is possible that we will see signs of increased activity by first-time buyers in the early months of next year, as we approach the end of the government’s stamp duty concession at the end of March."
He described the market as being "level", although there are generally low levels of lending activity at the moment.
 |
0 comments
