UK homeowners have earned sufficient income, on average, to cover their mortgage payment for the rest of 2018, according to British bank Halifax.
Dubbing today ‘Uk mortgage freedom day’, the bank says that, based on on the average annual mortgage repayment cost of £8,039 and the average net annual income of £27,7243, 16 April marks the day borrowers will have earned enough income to pay off the annual cost of their mortgage.
“Despite only a small shift, borrowers this year have on average earned enough to meet their mortgage payments for the rest of the year three days earlier than in 2017,” said Andy Bickers, mortgages director at Halifax, calling the news “a positive step considering a mortgage is often the greatest financial commitment we make in a lifetime.”
Research from the bank showed that there was a wide regional variation across the UK, with homeowners in Northern Ireland able to meet the ‘mortgage freedom’ mark by 10 March, as opposed to homeowners in England, who would reach the day on 9 May.
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“Mortgage freedom day is a great reminder of just how crucial it is to think about your mortgage,” said Ishaan Malhi, CEO and founder of online mortgage broker Trussle. “Some homeowners will probably be alarmed to find out how much of their working life is spent earning enough to pay for their home.”
The Halifax research also highlighted divides within England, with homeowners in the north, Yorkshire and Humber and the north west all reaching mortgage freedom day in March, while Londoners have to wait until 13 June.