Mortgage rates at record low

HORSHAM residents pay on average 30 per cent less in monthly mortgage repayments compared to when they reached their national highest in 2008, according to research released by Barclays.

In an analysis of more than one million customers, those living in Horsham were shown to pay on average 14.3 per cent, roughly £592, of their take home pay on monthly mortgage repayments in 2011, the most affordable they have been since records began in 2005.

The research also shows that repayment rates in Horsham are lower than the South East regional average of 15.1 per cent this year, and considerably lower than the national average of 20.5 per cent in 2008 when they reached their highest level.

The findings support opinion research commissioned by Barclays which found that 68 per cent of South East homeowners found their mortgage affordable, and that 79 per cent had room to manoeuvre should circumstances change.

Andy Grey, head of mortgages at Barclays, said: “With the cheapest ever mortgage deals offered to homeowners last year together with the fiercely competitive mortgage market it stands to reason that the average monthly mortgage payment is at its most affordable level since 2005.

“However, Barclays is urging homeowners not to be complacent with this affordability and to review their mortgage early on in 2012 to see how they can cut their monthly mortgage payments further.”

When asked about their views on interest rates, 40 per cent of homeowners in the region thought that interest rates will rise this year. Just under a quarter of them, 24 per cent, believed rates would start to rise in 2013.

When homeowners in the South East were asked by Barclays about budgeting for 2012, 63 per cent said energy bills were their biggest concern, 39 per cent said it was the cost of running a car and 35 per cent said it was the cost of food.