Independent mortgage broker Private Finance has given its thoughts on the UK Finance Mortgage Arrears and Possessions Data.
Director Shaun Church, said: “It’s a strange reality that while purchasing a home is the greatest financial challenge many of us will face, the ongoing cost of owning a home and servicing a mortgage is at its most affordable in recent memory.
“Thanks to incredibly low interest rates, mortgage arrears and possessions continue to remain at historic lows.”
“The affordability of mortgages is a story often overshadowed by the focus on the UK’s housing crisis. While saving for a sizeable deposit continues to remain the greatest barrier for millions hoping to step onto the housing ladder, prospective first-time-buyers should be empowered by the fact that when they do purchase a home, the cost of servicing their mortgage will be at near record lows.
“The challenges today’s first-time-buyers face are therefore starkly different to those of previous generations, where house prices were low but mortgage costs often accounted for a huge proportion of income.
“Existing homeowners should also be empowered by this good news story. To ensure their mortgage remains as affordable for as long as possible, homeowners should consider locking into a low rate mortgage for the long-term to safeguard against any future rate rises,” Shaun said.