Mortgage affordability improved since the summer
Current homebuyers are already benefiting from an increased level of mortgage affordability, with the average monthly repayment for those purchasing in September coming in £64 less per month versus July of this year, research by specialist property lending experts Octane Capital has revealed.
The average cost of a 75% loan-to-value 5-year fixed rate fell to 5.30% in September, down from 5.79% in July.
This means that those looking to purchase today are enjoying a cost saving of £64 per month compared to just a few months prior when making a full mortgage repayment, climbing to a saving of £765 over the course of the year.
Jonathan Samuels, chief executive of Octane Capital, said: “After reaching scary highs, and much industry discourse suggesting they would remain that way for a long time, mortgage rates have started to fall over the past three months.
“This is wonderful news for those coming to the end of a fixed term, who will welcome the reduced stress on their household finances.
“For buyers, it means things are becoming more affordable which aligns nicely with the upcoming autumn rush on the housing market. And sellers should be happy, too, because cheaper borrowing means buyer demand should increase after many postponed their property searches in fear of mortgage costs getting truly out of hand.
“We’re confident that, barring any major disasters or further governmental calamities, rates will continue to drop, albeit slowly, between now and the start of the new year.”