Adding to the spate of generally positive housing market indicators, the Woolwich Mortgage Affordability Survey has reported that the cost of servicing mortgages fell in September.

The mortgage lender put the cost of mortgage repayments at 18.6 per cent of borrowers’ household disposable income, a drop from 18.7 per cent in August 2005 although still up 0.5 per cent on September 2004.

The east of England was the only region to show an increase on August 2005, up from 18.3 per cent to 18.4 per cent. The south west, where latest Halifax figures record a drop in house prices of 1.4 per cent between August and September, and 1.5 per cent since September last year, shows the biggest improvement in affordability. The drop was 0.4 per cent from 18.8 per cent in August 2005 to 18.4 per cent in September 2005

‘The interest rate cut in early August has finally started to filter through to peoples' pockets’, said Woolwich head of mortgages Andy Gray. ‘We expect this to continue to improve over the coming months, hopefully injecting confidence into the housing market as well as reassuring consumers in the lead up to Christmas’.

• The Bank of England's Monetary Policy Committee this week voted to leave the bank base rate unchanged at 4.5 per cent.

<< BACK

EMAIL TO A FRIEND