Home buyers in November used a smaller percentage of their income to cover their mortgage interest than at any time in the past five years, according to the Council of Mortgage Lenders (CML).
Homeowners typically needed only 10.6% of gross income in November 2009 to cover mortgage interest payments, down from 11.1% in October. Other than a brief low of 10.2% in mid 1996, this represents the lowest debt burden since the CML began recording the data in 1974. The debt burden on first-time buyers also reduced, with 14.4% of gross income needed in November 2009, down from 15.1% in October - the lowest since May 2004. Although lending volumes experienced a seasonal dip in November, with house purchase loans down 4% on the previous month, this represented a 66% increase on Nov...
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