11
Dec
Mortgage affordability has worsened, says CML
Mortgage affordability continued to worsen in October, especially
for first time buyers, according to data from the Council of
Mortgage Lenders (CML).
Data from the CML shows that first time buyers used an average of
20.6 per cent of their income solely to pay mortgage interest in
October.
This stands as the highest proportion since 1991 and is up 0.2 per
cent from September.
Home movers are also feeling the squeeze, the CML said, spending
17.6 per cent of their income to pay interest on their
mortgage.
However, an improvement will be noted next year should the Bank of
England act according to expectations and introduce further cuts to
rate of interest next year, Michael Coogan, director general of the
CML predicted.
"For those customers coming to the end of their fixed rate mortgage
in 2008, the potential impact of higher monthly payments will be
diminished by the fall in bank rate this month and other rate
reductions to come early in the New Year," he explained.
