Mortgage payments drop by 21% in 5 years

The average annual mortgage payment has fallen by £950 (21%) over the past five years from £4,521 in 2008 to £3,571 in 2013, according to the latest research from Halifax.

Related topics:  Mortgages
Amy Loddington
3rd April 2013
Mortgages
This decline largely reflects the fall in mortgage rates since 2008.

In contrast, the cost of each of the other 10 housing expenditure categories tracked has risen since 2008. Electricity and gas bills have risen most (up by 57%, or £626 a year), followed by home and garden tools (25%) and water supply and miscellaneous dwelling services (22%).

As a result, mortgage payments have dropped significantly as a share of total housing costs since 2008 from 48% to 37% in 2013. In contrast, the share of electricity and gas bills has risen from 12% to 18%.  

Nonetheless, mortgage payments remain the largest single component of housing expenses (37%). Electricity and gas charges account for the second highest share (18%), followed by council tax payments (14%).

Martin Ellis, housing economist at Halifax, comments:

"The typical costs of owning and running a home have again increased slightly over the past year, although this rise was below the general increase in the cost of living.
"Overall, the cost of owning a home has increased by 2% over the past five years, representing a significant decline in real terms. Lower mortgage payments have largely offset increases in other items of housing-related expenditure, such as the substantial rises in electricity and gas bills."
More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.