Happy UK mortgage freedom day!
The 19th April is this year’s UK Mortgage Freedom Day – according to Halifax – the day when new borrowers will have earned enough to pay off the annual cost of their mortgage.
The lender based its calculation on the average annual mortgage repayment cost of £7,584 and the average net annual income of £26,0233. It says that homeowners with a mortgage will have today earned enough on average to cover their mortgage payments for the rest of 2016.
Mortgage Freedom Day this year is a day later than in 2015 because of average annual mortgage repayments edging up by £17 during the year.
Who waits the longest?
There is a huge variation in Mortgage Freedom Day across the country, with homeowners in Scotland and Northern Ireland reaching this on 12th March, followed by Yorkshire and the Humber (25th), the North West (26th) and the North (27th). Unsurprisingly, Mortgage Freedom Day for Londoners doesn’t arrive until 26th June – three months later than in northern England.
Craig McKinlay, mortgage director of Halifax, said: “For most homeowners, mortgage payments are the biggest outgoing every month; knowing they’ve earned enough to pay off their mortgage for another year should be a reassuring thought.”