Survey Shows Mortgage Repayment Rise By A Third In Three Years

A recent survey carried out into the cost of mortgage repayments has indicated that the annual average repayment on a UK mortgage has rocketed by a third in the past three years, with the average annual mortgage repayment rising from £4711 to £6284. The survey was carried out by YouGov on behalf of mform, and as part of the survey over two thousand homeowners from all across the UK were polled.

Part of the reason for the rise in mortgage repayments over the three year period is, of course, rises in interest rates, with the latest rise taking the interest rate to five percent. However, many state that it is not just the interest rate rises that have affected the steep rise in mortgage repayments, and that the boom in the value of properties in the UK is more of a factor in the repayment increase since 2003.

Figures showed that over one and a quarter UK homeowners were now having to find over one thousand pounds each month to cover their mortgage repayments, and over half of those paying this amount were from the London area, where property prices have shot up over recent years. In addition to rising mortgage repayments UK homeowners and new homeowners in the UK have had to cope with other rises as well.

According to reports, many of those seeking to buy a property and get a mortgage have been subjected to riding mortgage applications fees, with officials from Moneyfacts claiming that fees for mortgage applications have trebled in some cases over the past few years. There are also more properties that are now subject to stamp duty because of the increased value of UK properties, which also adds to the financial burden for homeowners.

Alisdair Milton
28th November 2006