Avg UK home owners now earned enough to pay annual mortgage costs
British homeowners have now earned enough to cover mortgage payments for the remainder of the year, a new study has indicated.
Research from Halifax shows the annual mortgage repayment cost is £7,968 and the average net annual income stands at £26,810, meaning salaries are now enough to cover the annual price of a mortgage.
There is a wide variety in mortgage freedom days throughout the UK. Scotland (March 14th), Northern Ireland (March 15th), the North of England and Yorkshire and Humber (March 25th) and London (June 27th).
Chris Gowland, Halifax mortgages director, said: “Our research is a simple way of comparing mortgage and rent payments, quite often the largest financial commitment people make, across the UK using average regional earnings.
“Whilst it excludes other living costs, the research highlights a divide between the North and the south, with those in the south having to wait longer to reach mortgage freedom than their counterparts in the north.”
Mr Gowland went on to say that homeownership is still cheaper than renting, even despite the existing barriers to property ownership.
New borrowers in West Dunbartonshire, Scotland, reached mortgage freedom first on February 26th, with seven of the ten earliest mortgage freedom days happening in Scotland.
These include North Lanarkshire (February 26th), East Ayrshire (February 28th) and Renfrewshire (March 2nd).
Homeowners in London will wait the longest and areas have different dates, including Brent (30th August), Camden (26th August) and Haringey (6th September).
There is also rental freedom day, representing the date that people have earned the total cost of their tenancy for the year. People in the north attained rental freedom first this year on April 6th, while Yorkshire and the Humber (April 7th) and Scotland (April 13th) followed.
Once again, London is much later, with its rental freedom day falling on July 29th, highlighting the expensive prices of the property.