Homeowners urged to take advantage of mortgage affordability

People looking to access the best mortgage rates are in a better position than ever as rates are currently at their lowest level for ten years.

According to new research from Barclays, borrowers are paying out 15.4 per cent of their monthly take home pay to cover their mortgage payments, which represents the lowest level since the bank's analysis began ten years ago.

Barclays' poll of over 1,000 homeowners found that 13 per cent can easily afford their mortgage payments, 39 per cent are comfortable and 28 per cent are stretched but have some disposable income to deal with interest rate increases.

Andy Gray, head of mortgages at Barclays, said: "It stands to reason that with interest rates at an historic low, mortgage affordability is at its best in a decade, but it is crucial that homeowners are not complacent."

He warned that the base rate is expected to increase during 2011 and borrowers should take advantage of the current low rate.

The Monetary Policy Committee will meet on March 10th to discuss changes to the current base rate.
 

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2011-03-01 11:14:16 © Moneyextra.com