One of the UK’s top mortgage lenders, the Halifax reckon that taking out a mortgage on UK property is now more affordable than it has been for almost 15 years.

This announcement was made following some lenders slashing their prices and the Bank of England keeping the UK’s interest rate at 0.5%.

Martin Ellis, Halifax’s head of housing economics said: “Obviously you have got to be able to raise a deposit but it is more affordable than it’s been for a long time. Job insecurity and depleting savings have meant many people have remained cautious about buying a property.”

The benefit of a mortgage lenders price war and the continuing historically low base rate, mean that the average mortgage repayment now stands at £574.15, making up 26% of earnings after tax.

Borrowers today hand over considerably less of their earnings to mortgage providers than their parents used to, repayments have on average taken up 37% of earnings over the past 25 years, said the Halifax.

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