New research from Barclays shows that average monthly mortgage repayments in England and Wales have from 20.5 per cent of take home pay in 2008 to 15.3 per cent of net income in April 2012.
This is the lowest percentage of net income being spent in mortgage repayments by homeowners for ten years.
The research reveals that as base rate has stayed at 0.5 per cent since March 2009, homeowners have been able to negotiate cheaper deals or move on to their lenders standard variable rate to take advantage of lower mortgage rates once their existing fixed rate mortgage deal has expired.
Andy Gray, head of mortgages at Barclays said: “With the fiercely competitive mortgage market it stands to reason that the average monthly mortgage payment was at its lowest level in a decade.”
Barclays research found that 64 per cent of respondents said their mortgage is more affordable this year than last.
Meanwhile 40 per cent think interest rates will rise in 2012, compared to 74 per cent of people who were asked the same question at the start of 2011.
25 per cent of homeowners believe the Bank of England will raise base rate during 2013.
The infographic below illustrates the trend of falling mortgage repayments and you can browse the interactive map to check on mortgage affordability across England and Wales.