Monday, April 20, 2009
Latest Halifax residential property review
Falling house prices and shrinking mortgage rates mean home affordability has improved significantly since mid-2007, according to a new Halifax review. According to the Halifax, house prices across the UK fell by an average of 16 per cent in 2008 and are expected to decline again in 2009, making it easier for borrowers to get on the property ladder. At the same time, the proportion of disposable earnings devoted to mortgage payments, a key affordability measure, has also fallen significantly over the past 18 months. Across the nation, typical mortgage payments for a new borrower have fallen from a peak of 48 per cent of average disposable earnings in the third quarter of 2007, to 31 per cent in Q1 2009.