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Hennessy Bowie & Co has been practising in Bishopbriggs for some twenty five years, principally in the areas of domestic conveyancing, commercial conveyancing, commercial leasing, executries and matters relating to care for the elderly,

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Mortgages at their most affordable for 14 years

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Mortgage affordability is at its most favourable since 1999 Quarter 2, with mortgage payments accounting for 27% of a new borrower's income in 2013 Quarter 2, according to new Halifax research.This is comfortably below the average of 36% recorded over the past 30 years.

Mortgage affordability has improved by 21 percentage points since reaching a peak of 48% of income in 2007 Quarter 3. Lower house prices and reduced mortgage rates have apparently been the main drivers behind the significant improvement in affordability.

There has been a further modest improvement over the past year with typical mortgage payments for a new borrower – both first-time buyers and homemovers – at the long-term average loan to value ratio falling from 28% of disposable earnings in 2012 Quarter 2 to 27% in 2013 Quarter 2.

There have been significant improvements in affordability in all local authority districts since 2007. Mortgage payments have fallen by at least a half as a proportion of average earnings in 24 areas. More than four in five areas (82%) have seen an improvement of at least a quarter.

Nonetheless, there remains a clear north/south divide.  Mortgage payments are at their lowest as a proportion of disposable earnings in Northern Ireland (17%), Scotland (19%), Yorkshire and the Humber (22%) and the North West (23%). Payments are highest in relation to earnings in Greater London (36%), the South East (34%) and the South West (32%). The ten most affordable local areas are all in northern Britain, while the ten least affordable areas are all in the south.

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Hennessy Bowie & Co has been practising in Bishopbriggs for some twenty five years, principally in the areas of domestic conveyancing, commercial conveyancing, commercial leasing, executries and matters relating to care for the elderly.

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