Mortgage repayments increase in April
Homeowners in the UK have experienced an average increase in home loan repayments of around 13%, in the last 12 months new data reveals.
The average repayment in April has soared to around 580; representing an increase of almost £80 faired against the same month in 2006. Home loan repayments are now absorbing almost 20% of the average households take-home pay, which is at its highest level since 2002.
According to a leading mortgage provider who conducted the study, repayment levels are almost 10% higher than in the early part of 2002 when the study was first conducted. However, net earnings have only rose marginally in the last 12 months.
Increasing interest rates, and a rise in the overall cost of living is likely to take its toll on homeowners in the not to distant future. With the vast majority of homeowners focusing their income towards the bear essentials, a large proportion of people have acknowledged to being in a delicate situation, with regards to disposable income.
Other parts of the country have seen even larger increases, with homeowners in the midlands tackling a rise of 19% closely followed by the north with an overall increase of 18%. London however, which is still prospering from the market boom, has seen the lowest increase of around 12%.
