First Time Buyer Mortgage Ratios
Posted by admin under: Main Jan 22
An interesting study here, Mortgage Ratios for first time buyers
The main trends are:
- A rise in mortgage to incomes ratio from 1.86 in 1979 to 3.39 in 2007 Q3. There has been a faster increase since 1998 from 2.38 to 3.39, just 9 years later.
- Rise in Interest payments as a % of income. In the past 4 years the ratio of interest payments to income has increased from 11% to 20%. However, this is still lower than the ratio in the early 1990s. In the early 1990s when the UK was in the ERM and interest rates reached 15%, interest payments reached 27% of income.
With interest rates likely to fall next year, interest rate payments as a % of income should fall. Also if house prices do stagnate or fall, it will enable house price – income ratios to fall, making mortgages more affordable for first time buyers.
- First Time Buyers
- Guide to getting a mortgage for first time buyers
- Getting best mortgage on low income
See also:
Ratio of house prices to incomes
Source: First Time Buyer Mortgage Ratios
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Tuesday, January 22nd, 2008 at 2:08 pm and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.