Continued low interest rates have helped make mortgage repayments their most affordable for nearly eight years. This information has come from figures released by the Council of Mortgage Lenders. The cloud to this silver lining is that, whilst this is good news for home owners and first time buyers alike, the latter will need a deposit of about 20% on average!
On the flip side, mortgage repayments keep falling, and typically only consume 12% of income – this is the lowest level since January 2004. This also helped those looking to move up the property ladder with home movers paying on average of 9.2% of their income each month – this figure is the lowest monthly level since the CML started its records in 2002.
What this means is that there could well be an increase in activity from first time buyers in the early months of 2012. This seems like it could be even more likely when you consider that the government’s stamp duty concession is coming to an end in March next year.
The overall trend for mortgage lenders at the moment however is one of very low levels of lending and very few people moving. The economic crisis and the threat of another recession is forcing the average homeowner to sit tight and attempt to ride out the storm.
So while here in the UK we might be able to enjoy the lowest mortgage repayment rates for nearly a decade the factors that combine to make these rates possible are also the same factors that are making the people, who might take advantage of the current rates, shy away from them.
This post was supplied by Andy from Wealthboost