Monthly mortgage payments for first-time buyers in the UK reached their most affordable level for almost eight years in October, new research has shown.
Carried out by the Council of Mortgage Lenders (CML), the study revealed the movement has been driven primarily by the persistence of low interest rates .
According to the findings, monthly interest payments have continued to tumble and now typically account for around 12.3 per cent of income – marking the lowest level since January 2004.
In addition, those moving home are likely to have seen the affordability of doing so improve.
It was demonstrated that this group now spends an average of 9.2 per cent of their income on mortgage interest, the lowest rate since 2002.
Paul Smee, director general at the CML – whose members include building societies, banks and other mortgage lenders – said: “Despite the fall in lending in October, it is possible that we will see signs of increased activity by first-time buyers in the early months of next year.”
The industry figure added the underlying picture of the overall housing market remains level.
