Barclays mortgage research

New research shows average monthly mortgage repayments across England and Wales are the lowest they have been for 10 years. 

• Average percentage of take-home pay has fallen from 20.5% in 2008 to 15.3% in April 2012
• Opinion research commissioned by Barclays found the majority of homeowners say they are more comfortable with their current payment levels compared to this time last year

Research shows that monthly mortgage payments in Britain are lower since 2008 ¹. This could be potentially good news for first-time buyers and also current homeowners thinking about remortgaging as they may be able to save money on their mortgage and free up space elsewhere in their budget.

Andy Gray, head of mortgages at Barclays , said: ‘With the fiercely competitive mortgage market it stands to reason that the average monthly mortgage payment was at its lowest level in a decade'. Andy added that ‘the cost of energy bills, running a car and food may be beyond their control, but this could be an opportunity for homeowners to look at their mortgage payments and shop around for better deals to ensure their mortgage remains manageable during 2012 and beyond, which will also help to offset any other rising household costs.'

Barclays research ² shows that on average people paid out 15.4% of their take-home pay last year to cover their monthly mortgage payments, compared to 2008 when this figure reached its highest point at 20.5%. The average figure so far for 2012 is 15.3% (as at the end of April). The lowest point since records began 10 years ago was in September 2011 when the average mortgage payment fell to 15.2%, or £488 a month. These figures support opinion research commissioned by Barclays that found that: 

• 64% find their mortgage affordable compared to the year before and have some flexibility should their circumstances change 
• 40% think interest rates will rise in 2012, compared to 74% who were asked the same question at the beginning of 2011
• A quarter of homeowners believe rates will start to rise in 2013

Homeowners who are reviewing their mortgage arrangements could take advantage of the Barclays Great Escape range, which allows borrowers to switch their mortgage to Barclays with no legal, valuation or application fees and to receive £300 cashback to cover the cost of their present lenders' exit fees. An early repayment charge applies during the fixed rate period. There is also the option to, at a later date, switch from a Barclays Tracker to a Barclays Fixed Rate Mortgage any time, with no early repayment charge.

Please think very carefully about the implications of a remortgage and consider consulting your mortgage broker before making any decisions. To find out more about the Great Escape range call Barclays on 0800 022 4022 ³.

If you want to put our infographic on your own website, feel free. Here's the code to copy and paste into your page: