Conducted monthly, the research showed servicing costs fell by 0.1 per cent from August’s total of 18.7 per cent. However, over the last year servicing costs have risen by 0.5 per cent.
James Cotton, mortgage specialist at London & Country, said: “It is no surprise there was a slight fall in September. With August seeing the first Base Rate drop for over a year a stable market was to be expected. Increases over the year are probably due to people coming off very low cheap deals from a few years ago that may have finished.”
The research also revealed that over the country affordability had either improved or stayed the same, except for the East of England. Regionally the East was the only region to show a monthly increase in servicing costs, from 18.3 in August to 18.4 per cent for September. The South-West region of England saw the biggest monthly improvement in affordability, dropping 0.4 per cent to 18.4 per cent for September.
Yearly figures also revealed that Yorkshire’s servicing figures improved by 0.3 per cent to 16.3 per cent of borrowers’ household disposable income.
Responding to the figures Andy Gray, head of mortgages at the Woolwich, said: “The interest rate cut in early August has finally started to filter through peoples’ pockets with the improvement in affordability in September. We expect this to continue to improve over the coming months, hopefully injecting confidence into the housing market as well as reassuring consumers in the lead up to Christmas.”
The monthly research includes information taken from over a million Barclays Group current accounts that incorporate income and mortgage payment activity.
