London (PRWEB) February 4, 2010
Homeowners in England and Wales saw a 20 per cent drop in the proportion of their take-home pay spent on monthly mortgage repayments in 2009, according to the latest mortgage affordability research released by Woolwich, the mortgage arm of Barclays.
In December 2008, homeowners across England and Wales were spending on average £196 of every £1000 of their take home pay each month on their mortgages. A year later this had dropped to £157. In cash terms this equates to a saving of £110 per month on average in England and Wales.
The average monthly mortgage payments for homeowners now stands at £497, compared to £607 in December 2008.
Andy Gray, head of mortgages at Barclays said: "For the 11 million UK households who have a mortgage there is a silver lining to the recession - a substantial reduction in mortgage payments right when they need it most. For them it's a chance to save in a way they might not have been able to before, or to overpay their mortgage and cut years from its life."
The Woolwich Mortgage Affordability research measures the proportion of homeowners' income that is spent on mortgage repayments. It is based on data from a representative sample of nearly two million Barclays bank account holders making mortgage payments from the full range of UK lenders.
Regionally, the largest fall was in London where the proportion of pay spent on mortgage repayments has decreased by 23 per cent, with the smallest decrease in the North East, at 15.5 per cent. Of the ten regions analysed, the Welsh spend the smallest proportion of their take home pay - £143 in every £1000 - on monthly repayments. Londoners spend the most - £189.
Despite Londoners spending the most, they have also experienced the biggest payment reductions [£228] while homeowners in the North East saved on average £80 a month.
Notes to editors:
About the research:
Sample size of Woolwich Mortgage Affordability Research: 1.8 million Barclays customers who make monthly mortgage payments to various lenders. This allows us to look directly at the ratio between mortgage payment and household disposable income. This simple ratio gives us a percentage of disposable income spent on mortgages each month.
Barclays is a major global financial services provider engaged in retail banking, credit cards, corporate banking, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 145,000 people. Barclays moves, lends, invests and protects money for over 49 million customers and clients worldwide. For further information about Barclays, please visit our website.