You are here: Home -

Happy Mortgage Freedom Day!

0
Written by:
19/04/2017
Today is the day when new borrowers will have earned enough to pay off the annual cost of their mortgage
Happy Mortgage Freedom Day!

Today homeowners will have earned enough, on average, to cover their mortgage payments for the rest of 2017, said Halifax, based on the average annual mortgage repayment of £7,968 and the average net annual income of £26,810.

However, there is a wide variation in ‘Mortgage Freedom’ Days across the country. Homeowners in Scotland can ‘celebrate’ theirs on 14 March. This is followed by Northern Ireland on 15 March and then the North and Yorkshire and Humber on 25 March.

There is a long wait for Londoners, with ‘Mortgage Freedom’ Day falling as late as 27 June.

Chris Gowland, mortgages director at Halifax, said: “Whilst it excludes other living costs, the research highlights a divide between the North and the South, with those in the South having to wait longer to reach ‘mortgage freedom’ than their counterparts in the North.”

‘Mortgage Freedom’ winners

At local authority district level, new borrowers in West Dunbartonshire, Scotland, reached ‘mortgage freedom’ first (26 February 2017).

Seven of the 10 earliest ‘Mortgage Freedom’ Days this year took place in Scotland, including North Lanarkshire (26 February) and East Ayrshire (28 February) and Renfrewshire (2 March).

On the other side of the border, homeowners in London have the longest to wait. Haringey homeowners don’t reach ‘Mortgage Freedom’ until 6 September, preceded by those in Brent (30 August) and Camden (26 August).

Rental Freedom Day

As with ‘Mortgage Freedom’ Day, ‘Rental Freedom’ Day varies across the country. Those in the North achieved ‘rental freedom’ the first this year (6 April), swiftly followed by their counterparts in Yorkshire and the Humber (7 April) and Scotland (13 April). Once again, Londoners have the longest to wait with tenants not achieving ‘rental freedom’ until 29 July.

Gowland added: “As our research confirms, homeownership is still cheaper than renting. ‘Rental Freedom’ Day falls 17 days after ‘Mortgage Freedom’ Day, showing that, despite barriers to property ownership, homeowners are still better off than renters.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Comments are closed.

How much can you borrow?

A calculator designed to help you understand how much you can borrow towards your property

Your Mortgage Guides

Guide to Offset Mortgages

Download our handy guide to offset mortgages, brought to you in partnership with Scottish Widows Bank

Read More >

Are you on the right mortgage product?

See how much you could potentially save by remortgaging to a different product
Read previous post:
2238435-retired-couple
Cost of equity release at record low level

Fixed rates have fallen and there is a wider choice of products for older borrowers

Close