Mortgage Payments Account for 12% of Household Income – CML

The latest figures revealed by the Council of Mortgage Lenders (CML) suggest that mortgage payments were affordable to most Brits in October 2011.

As such, first-time buyers in the UK only spent 12% of their household income on monthly interest payments, while home movers spent even less, only 9.2% of their income. The same low levels were last registered in 2004 and 2002 respectively.

Commenting on the findings, Mr. Paul Smee of the Council of Mortgage Lenders, said: "there will be a rise in mortgage lending in the early months of next year as people rush to take advantage of the reduction in stamp duty, which ends soon."

Let's remind that earlier this month the British Bankers Association reported an increase in mortgage approvals in October 2011. As such, the number of approved mortgages was 16% higher than at the same time last year; the average mortgage value stood at 145,000 pounds.

The full report by the CML is available on the official website of the organisation.