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Mortgage payments represent a third of all household spending
UK households are spending around a third of their total outgoings on mortgage payments although there are dramatic regional differences across the country, a survey has found.
A Castle Trust report found that across the UK the average monthly mortgage payments make up 30% of a household’s total outgoings.
Households in London spend an average of £716.80 on mortgage payments each month, the biggest sum in the country, compared to Northern Irish households which spend just £438.40 every month.
That figure meant that homes in Northern Ireland also spent the lowest proportion of their monthly spending on mortgage repayments, taking up less than a quarter (22.4%) of their outgoings each month. In contrast, mortgage payments took up 32.1% of spending in the South East of England.
Castle Trust also found that homeowners in the North East (31.5%) spend more of their total monthly expenditure on mortgage payments than in London (31.2%).
Sean Oldfield, chief executive officer at Castle Trust, said: “Even with mortgage rates well below their historic average, mortgage payments represent a significant proportion of a household’s monthly spending, with major differences from region to region.
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“Households are vulnerable to any rise in their mortgage rates.
“The risk of rising mortgage rates is a major issue for homeowners with their finances already under pressure and shared equity can play a major role in reducing risks, including the risk of going into arrears, by cutting monthly mortgage commitments.”
| UK region | Average monthly mortgage spending | Average monthly household spending | Mortgage spending as percentage of household spending |
|---|---|---|---|
| South East | £692.40 | £2,157.20 | 32.1% |
| North East | £484.00 | £1,536.80 | 31.5% |
| London | £716.80 | £2,299.60 | 31.2% |
| South West | £587.20 | £1,919.60 | 30.6% |
| North West | £534.40 | £1,776.00 | 30.1% |
| UK | £557.20 | £1,882.80 | 29.6% |
| Wales | £459.60 | £1,592.80 | 28.9% |
| Yorkshire and Humberside | £469.60 | £1,640.40 | 28.6% |
| West Midlands | £478.00 | £1,698.40 | 28.1% |
| East | £553.20 | £1,988.40 | 27.8% |
| East Midlands | £477.20 | £1,787.60 | 26.7% |
| Scotland | £461.60 | £1,762.40 | 26.2% |
| Northern Ireland | £438.40 | £1,957.60 | 22.4% |