Press release

Mortgage affordability improves as market rates fall

20 June 2015
Keeping up with monthly mortgage repayments is becoming less of a problem for people wanting to buy a home, the BSA’s Property Tracker has revealed. 
 
Just one third (33%) of consumers think that this monthly commitment is a barrier to buying a property – the lowest since 2009. Affordability has improved over the past twelve months when monthly mortgage repayments were thought to be a barrier for almost half (49%) of consumers. This corresponds with average mortgage rates falling from 3.73% in June 2014 to 3.19% today. Lack of job security has also fallen as a barrier, whilst raising a deposit – the biggest challenge, remains steady (59%).
 
With the economic outlook improving, over half (56%) of people also think house prices will rise over the coming year. Only 12% said they didn’t think now was a good time to buy a property – the lowest on record since Property Tracker began in 2008.
 
Commenting on the results, Paul Broadhead, Head of Mortgage Policy at the BSA, said:
 
“Whilst it is good news that optimism has risen in the housing market, we are still seeing some uncertainty. The number of people who believe now is a good time to buy a property has fallen by a few percentage points in the past quarter – possibly a result of the prospective Bank Rate rise towards the end of this year, or early next.
 
“That said, with competition returning to the market, it is pleasing to hear that prospective buyers now have more options when they do take steps to owning their own home. Just last week, data from Moneyfacts revealed that building societies were winning the mortgage war when it comes to rates. The average building society rate is 2.98%, 0.21 percentage points lower than the market. We encourage everyone to shop around if they are looking to get a mortgage. If they do, they are more likely to get a better deal.”


-Ends-


You can take a look at the full set of results by reading the Property Tracker report.

 

Press contacts

Hilary McVitty
Head of External Affairs
020 7520 5926
Hilary.mcvitty@bsa.org.uk
 
Notes for Editors
  1. The Property Tracker survey is conducted quarterly by Canadean Consumer for the Building Societies Association (BSA). Figures prior to June 2012 are from YouGov Plc.  Total sample size for June 2015 was 2000 adults. Fieldwork was undertaken 29 – 31 May 2015. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
  2. The Building Societies Association (BSA) represents all 44 UK building societies. Building societies have total assets of over £330 billion and, together with their subsidiaries, hold residential mortgages of over £250 billion, 19% of the total outstanding in the UK. They hold almost £240 billion of retail deposits, accounting for 19% of all such deposits in the UK. Building societies account for about 28% of all cash ISA balances. They employ approximately 39,000 full and part-time staff and operate through approximately 1,550 branches