Mortgage payers £1,000 a year better off in Scotland

‘Typically more affordable’

SCOTS mortgage payers are more than £1,000 a year better off compared to other UK homeowners thanks to the era of low interest rates, data shows.

In the decade since the financial crash, the cost of taking out a home loan has sunk to record lows. Now a Bank of Scotland (BoS) survey has found borrowers north of the Border have cashed in, with bills shrinking by nearly half as a proportion of disposable income.

Mortgage repayments typically swallow up only 20 per cent of the monthly pay packet now; it was 38 per cent at the end of 2007. Across the UK, the proportion has dropped from 7 per cent to 30 per cent. This has left Scottish home- owners with an extra £692 in their pocket per month compared with an average British figure of £601.

Over a year, the £91 difference equates to £1,092.

BoS director Ricky Diggins said: ‘Despite the base rate increasing towards the end of last year, it was the 7 per cent rise in house prices that had a slight impact on mortgage affordability for homeowners in Scotland.

‘However, even with the slight decrease in affordability over the last year, the average amount homeowners spend on their mortgage payments as a proportion of disposable income is significantly less now when compared to ten years ago – and Scotland is typically more affordable when compared to the rest of the UK.’