UK Mortgages get more expensive

UK mortgages have become increasingly expensive and are taking up a higher % of personal disposable income than ever before.

This is due to the persistent rise in UK house prices. In the past 6 years UK house prices have more than doubled.

The Council of Mortgage Lenders said first-time buyers spent 18.7 percent of their income on interest on mortgages taken out in April.

This was the highest since 1992, when double-digit interest rates, of 15 % tipped the economy into recession.

Interest rates are much lower now, at 5.5%; however, the average UK mortgage debt has increased. There are fears that if interest rates increased by another 0.5% many new mortgage owners could struggle to pay the mortgage interest payments and could be at risk of home repossession.

• Top tips for reducing mortgage payments
• UK Mortgages more costly