Mortgages ‘more affordable in 2009’

The recession had a “silver lining” for many homeowners as the affordability of mortgages increased for many people in England and Wales last year (2009).

Andy Gray, head of mortgages for Barclays, stated that a “substantial reduction” in mortgage payments was experienced by millions of households over the past 12 months.

For every £1,000 that homeowners had in take home pay in December 2008, £196 went on mortgage payments on average, according to figures from Woolwich.

In 2009, the same figure had fallen by 20 per cent to £157, with the average monthly payment standing at £497.

The greatest decrease in payments was experienced by those in London, followed by the south-east and south-west.

A drop of 15 per cent – the smallest average decrease – occurred for homeowners in the north-east.

Nationwide reported recently that the typical house price rose by 2.1 per cent in January. The figure was 8.6 per cent higher than the same time last year.

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