Borrowers ‘are really getting squeezed’
The rising cost of mortgages in England and Wales means that homeowners are having their finances “squeezed”, according to latest research.
Average mortgage payments rose by £78 year-on-year in April, reaching a value of £590, while net earnings only increased by five per cent.
This means that typical households are spending 19.9 per cent of their take-home pay on mortgage repayments, leaving less cash spare to spend on other things.
Andy Gray, head of Woolwich Mortgages, commented: “With the costs of council tax, petrol, food and drink, as well as mortgages, all increasing consumers are seeing a large amount of their earnings being diverted to essentials, putting real pressure on disposable income.”
He added that with analysts expecting interest rates to rise again this month, borrowers are likely to feel increasingly pressurised in the short-term.
The news follows comments from debt agency Thomas Charles that younger people are “certainly” getting more into debt, due to university fees and the rising cost of mortgages.
Homeowners looking for more affordable forms of borrowing may wish to wrap up payments to numerous creditors into one package with a debt consolidation loan.
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