Bank of Scotland

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.

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