Scotland has the UK's most affordable housing
16 January 2012
Mortgage payments for a new borrower in Scotland during the second half of 2011 were at their lowest as a proportion of disposable earnings for 9 years, according to new Bank of Scotland research.
Typical mortgage payments for a new borrower - both first-time buyers and homemovers – at the long-term average loan to value ratio stood at 20% of disposable earnings in the fourth quarter of 2011. This is well below the average of 30% recorded over the past 27 years.
Overall, there was a modest fall in payments relative to earnings over the past year from 21% in 2010 Quarter 4.
Mortgage payments have nearly halved as a proportion of income in recent years from a peak of 38% in 2007 Quarter 4. Lower house prices and reduced mortgage rates have been the main drivers behind the significant improvement in affordability.