Mortgages at most affordable level in 8 years

Record low interest rates have lead to the most affordable mortgages for eight years, report the Council of Mortgage Lenders (CML). Monthly interest payments have steadily fallen and now stand at 12.3% of income – the lowest level seen since January 2004. Lending conditions are also improving for first-time buyers, with more competitive 90% and 95% mortgages available, as well as 100% guarantor mortgage being offered through Robinson Jackson’s in-house financial advisors.

Paul Smee, CML director general, said: "Despite the fall in lending, it is possible that we will see signs of increased activity by first-time buyers in the early months of 2012, as we approach the end of the government's stamp duty concession at the end of March.