Monday, January 16, 2012
Category:
Finance News
According to Halifax, in the second half of last year, mortgage payments for new borrowers (as a proportion of their disposable earnings) were the lowest they have been for 14 years. In quarter four, a new borrower’s typical mortgage payment – at the long-term average loan to value ratio – was reportedly 27 percent of their disposable earnings. In contrast, it has been revealed that the average over the past 27 years stands at 37 percent. Over the past year, findings have shown a ‘modest’ decrease in payments relative to earnings, from 29 percent in the fourth quarter of 2010.
The Halifax Affordability Review has uncovered that mortgage payments as a proportion of income have virtually halved in recent years from their peak of 48 percent in the third quarter of 2007. The considerable improvement in affordability has primarily been attributed to reduced property prices and lower mortgage rates.
Since 2007, there has reportedly been an improvement in affordability – better than the long-term average – in all twelve regions of the UK. In fact, it was found that new borrowers’ average mortgage payments as a proportion of their average disposable earnings are two thirds lower in Northern Ireland.
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Homeowners who have recently purchased their first property and are currently seeking the finance required to transform it into their dream home could consider taking out a secured loan. One of many finance options available, a secured loan could allow borrowers to embark upon an array of projects in and around their home. For example,
secured loans could allow borrowers to invest in a conservatory or extension if extra living space is desired. What’s more, the funds could be used to completely redecorate the property in accordance with personal tastes and lifestyles.
