Halifax research reveals that today homeowners have earned sufficient, on average, to cover their mortgage payment for the rest of 2018. This is based on the average annual mortgage repayment cost of £8,039 and the average net annual income of £27,724.
Halifax also reveals that there is a wide variation in ‘Mortgage Freedom’ Days across the country with a gap of two months between when homeowners in Northern Ireland ‘celebrate’ on 10 March compared to those in England on 9 May, the divided across the regions is highlighted by those in the North, Yorkshire and Humber and the North West all reaching Mortgage Freedom Day in March, while Londoners have to wait until 13 June.
‘Rental Freedom’ Day follows a similar pattern across the country according to Halifax.
Andy Bickers, Mortgages Director, Halifax, said: “Despite only a small shift, borrowers this year have on average earned enough to meet their mortgage payments for the rest of the year three days earlier in 2017 – a positive step considering a mortgage is often the greatest financial commitment we make in a lifetime.
“Homeowners are overall better off than renters, with ‘Rental Freedom’ Day falling more than two weeks later for the second year running. First-time buyers in particular are saving £900 a year buying a home than renting.
“The North-South divide remains when it comes to Mortgage Freedom Day, with homeowners in the North reaching mortgage freedom up to three months earlier than their southern counterparts.”
Read the Halifax release 16th April 2018 in full click here.
Author: Allen Walkey
Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.