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Mortgage interest payments 'more affordable'
Levels of interest on homeowner loans are becoming more affordable, research has revealed.
The study by the Council for Mortgage Lenders (CML) revealed that home buyers in November needed to use less of their income to cover such repayments than at any time for more than five years.
It was found that only 10.6 per cent of gross income was needed to cover the interest, which is down from 11.1 per cent in October.
The debt burden on first time buyers also reduced, with just 14.4 per cent of gross income needed in November.
Michael Coogan, director general of the CML, said: "It is encouraging to see that mortgage interest payments are so affordable for home movers and first-time buyers.
"But with substantial deposits still needed to secure a mortgage, the market will continue to be relatively restrained for some time to come."
Recent figures published by Moneyfacts revealed that rates on two-year fixed mortgages are now 0.24 per cent lower than in November last year.