Over a million paying £1,000 monthly on mortgage

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Over a million paying £1,000 monthly on mortgage

Thu 23rd Nov 2006

Around 1.38 million homeowners in the UK are facing mortgage repayments in excess of £1,000 per month, new figures have revealed.

Research conducted by mform - an online mortgage company - found that 55 per cent of this total live in London and 31,740 Scots were paying over £1,000 a month amid a housing market that sees the UK average for mortgage repayments standing at £6,284 per annum.

In 2003, the average annual mortgage repayment stood at £4,711, pointing to the fact that the cost of paying back the loan has risen by £1573 in three years.

Savills Residential Research recently predicted that the housing market in the UK would witness annual growth of 4.5 per cent over the next ten years, resulting in a scenario whereby more people could end up joining the million plus paying over £1,000 per month.

The research also estimates that interest rates will rise to 5.25 per cent during 2007 and Yolande Barnes, director of Savills Research, stated: "What matters here is not how much spending power people have compared to other periods in the past, it is what they have left over for discretionary spending after taking housing costs and living costs into account."

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