The affordability of the mortgage in January deteriorated for the second month in a row in January, the newest index of mortgage and security network Stonebridge discovered.
Borrowers spent more of their salary on monthly reimbursements in both December and January than in previous months, the company’s analysis showed.
In December, the repayments of mortgage accounted for 36.5% of the salary of the average borrower, an increase of 36.3% in November.
January saw a further increase in this figure to 37%.
Weakening affordability is powered by a combination of increasing loan sizes, slow wage growth and higher mortgage interest rate.
The average loan size grew by 1.4% to £ 192.114 in January, while the average annual salary rose by 0.5% between December and January, according to the Office for National Statistics.
The figures from the Bank of England show that the average rate on new mortgages has risen for the first time in five months, with 4 basic points to 4.51%.
However, affordability is still considerably better than in December 2023, when the repayments of the mortgage were good for 42.4% of the average salary.
The long -term average is 35.9%.
Stonebridge, Chief Executive Rob Clifford says: “The affordability of the mortgage has remained tight for the second consecutive month, because rising house prices higher loans sizes and pushed mortgage interest rates.
“But in the context, remember that affordability remains considerably better than early last year, and affordability will certainly improve as the rates fall in the coming months.
“While the Monetary Policy Committee of the Bank of England chose to keep rates in May, there are calls at the time to further lower loan costs.
“Inflation remains a concern, but much of the recent increase is imported, powered by rising energy costs and a strong dollar instead of increasing through domestic demand.
“As a result, the risk that inflation will get out of hand appears to be limited.
“At the same time, the British economy is struggling for Momentum.
“If the growth continues to block, the MPC can have little choice than stepping in to offer support.
“That could lead to lower loan costs in the coming months, and offers much needed lighting to mortgage lenders, who are still struggling with the impact of the costs of living.”