But regional differences mean there is a 10% gap between the highest and lowest proportion spent on mortgages from 22.4% in Northern Ireland to 32.1% in the South East. Homeowners in Scotland spend the second lowest proportion at 26.2%.
Surprisingly, London does not top the table in terms of the proportion spent on mortgage payments. Castle Trust’s analysis of UK regions revealed that, as well as those in the South East, households in the North East (31.5%) spend more of their total monthly expenditure on mortgage payments than in London (31.2%).
Castle Trust, which aims to provide a safer way to buy a home and a safer way to invest in property, believes households need to think about how to protect themselves from any potential rises in mortgage costs.
Sean Oldfield, chief executive officer, 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. 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.”
