Thanks to the current low base interest rate, the current climate means that some of the mortgage deals on offer at the moment are some of the most affordable deals available for a number of years, according to a report in MoneyNews.
Speaking with Ray Boulger, a representative of mortgage broker John Charcol, the report highlights how the percentage of income being spend on mortgage interest in general has fallen.
According to Boulger, first time buyers were spending around 19.8% of their income on mortgage interest just two years ago but are now paying around 13.2% of their salaries. Home owners looking to remortgage has reduced the amount from 17% to just 9.6% over the same time period.
“Even allowing for some future increase in interest rates, this adds weight to the argument that affordability is sufficiently good to prevent any significant house price falls.”
In other news last week, Ray Boulger also stated that the interest rate gap between a five year and a two year fixed rate mortgage is increasing and believes that one of the largest contributing factors is that lenders are focusing on the areas in high demand.
Currently, most first time buyers are required to place a higher deposit on a home to gain a mortgage although lower house prices have made this goal easier than it may have been previously.
There is still a wide range of mortgage deals available and a qualified mortgage advisor will be able to discuss the most suitable deals for a person’s circumstances.