Interest payments at 35-year low
Borrowers moving home in May saw their mortgage interest payments accounting for the lowest proportion of their income in 35 years, according to new data from the Council of Mortgage Lenders.
House purchase lending rose from a year ago for the 11th consecutive month. But with the challenging economic backdrop, government spending cuts and forthcoming tax increases, the positive trend is likely to tail off in the second half of this year.
CML director general Michael Coogan says: “House purchase lending continues its recovery but positive comparisons with equivalent months a year ago look unlikely to continue.”