Repayments have been on an upward trajectory over the past decade
Homebuyers are now paying the most expensive monthly mortgage repayments since 2010, the latest market analysis by mortgage experts Revolution Brokers, has revealed.
Today, the average monthly repayment for a three-year fixed-rate mortgage over 25 years at 75% LTV with a 25% deposit is £948. This is £86 more expensive than last year’s average, and the highest it has been since 2010 when the average payment – after being adjusted for inflation – was £972 per month.
Revolution Brokers, however, noted that today’s figures are still considerably lower than 2007’s high point when the global financial crash pushed the average monthly repayment up to £1,355. It added that the current hike in repayment costs is not an anomaly as the average repayment has, with a couple of exceptions, been rising gradually since the 2012 low point of £771 per month.
As for variable-rate mortgages, today’s average monthly repayment of £1,135 is £49 higher than last year and the highest since 2008 when the average was £1,350. Variable-rate repayments have been on an upward trajectory, with the odd anomaly, since 2011’s low of £771 per month.
“This is undoubtedly a hard time for buyers, not least those on a variable rate mortgage,” Almas Uddin, founding director of Revolution Brokers, commented. “However, we do still have something to be a little thankful for and that’s the fact that current economic turmoil has not pushed mortgage costs anywhere near to the crippling highs we saw as a result of the last global financial crash.
“Furthermore, it is possible that we now have a more stable leadership in the UK which will calm some of the markets that have influenced this recent rise in mortgage costs, and we have already seen mortgage rates start to reduce in recent weeks.”