Halifax research shows that today is this year’s UK Mortgage Freedom Day – the day when new borrowers will have finally earned enough to pay off the annual cost of their mortgage.
Based on the average annual mortgage repayment cost of £7,567 and the average net annual income of £25,5884, Halifax has calculated that those with a mortgage will have today earned enough on average to cover their mortgage payments for the rest of 2015.
Mortgage Freedom Day this year occurs eight days later than in 2014 (10 April), and is the result of net annual income decreasing by £15 since last year while the average annual mortgage repayment increasing by £613 over the same period.
Craig McKinlay, mortgage director at Halifax, which is part of Llloyds Banking Groyup which employs 6,000 people in Calderdale. commented: “While monthly mortgage and rental costs account for the majority of many people’s household budgets, Mortgage Freedom Day provides a different perspective on how much we spend on these costs over the course of a year.
“Our research shows that today, if people had put everything they’d earned since the start of the year towards their mortgage, the average homeowner would be mortgage free for the remainder of the year.”