Mortgage finance is now at its most affordable level in almost three years, according to mortgage and protection network Stonebridge.
The network’s latest Mortgage Affordability Index found the average borrower’s mortgage made up 34.3% of their salary in September, down from 34.6% in August and 40% in September last year.
Falling mortgage rates, which dropped by 0.57% to an average of 4.19% over the last 12 months, were the main driver.
Wages also went up by 4.75% in the year to September, making mortgage finance more accessible for borrowers.
Rob Clifford, CEO at Stonebridge, said: “Mortgage affordability has improved significantly over the past year, reaching its most favourable level since late 2022.
“Falling mortgage rates, alongside rising wages, mean borrowers are spending a smaller share of their income on housing—a welcome relief for first-time buyers and those looking to move.
“Looking ahead, the Bank of England is expected to cut rates in December.”
Clifford added: “While fixed-rate mortgages are priced off swaps rather than the base rate, a lower-rate environment could encourage lenders to bring more competitive deals to market.
“This suggests affordability could continue to improve into 2026, provided house prices don’t rise unexpectedly.”
