Latest figures show improvement in mortgage affordability

November 28, 2025 by Brendan O'Neill

Property Market

The latest figures show that mortgage affordability has undergone an improvement, as people are spending less of their monthly income on paying loans back.

This finding is taken from the new Mortgage Affordability Index published by Stonebridge. What that report shows is that the percentage of monthly income that is currently being used to pay back mortgages is at its lowest for almost three years. During September, the average mortgage repayment took up 34.3% of a typical UK salary. The month before that it was 34.6%, with the September figure being the lowest since late 2022.

When the figure for September is compared to that month in 2024, the improvement in affordability levels becomes more striking. Last September, mortgage repayments were taking up 40% of the average salary.

One of the main factors that Stonebridge is crediting for this situation is the lowering of rates by lenders. They have undergone a 57 basis point reduction during the last 12 months. The current average rate stands at 4.19%.

Another contributory factor is growth in the average wage over the last year. This has risen by 4.75%, which ensures that people have more money coming in per month.

Stonebridge chief executive Rob Clifford spoke with Mortgage Introducer about the report. He said:

“Falling mortgage rates, alongside rising wages, means borrowers are spending a smaller share of their income on housing – a welcome relief for first-time buyers and those looking to move.”

This is a welcome situation for mortgage advisors with CeMAP training too, as it means demand will increase.