Moneyfacts has carried out some comparisons of current economic data and mortgage data with the equivalent statistics from 10 years ago.
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The fact that Mortgage Interest Relief at Source (MIRAS) is no longer available is a key factor in the cost differential, but more influential is the fact that average salaries (from mortgage applicants), whilst they have doubled in the last decade, have been far outstripped by house price increases.
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Andrew Hagger, Head of news and press at Moneyfacts.co.uk, said: “The net effect is that mortgage payments take a much bigger chunk of our income than they did in 1996. This statistic looks gloomy enough in its own right, but when you factor in additional increased expenses such as higher council tax and utility bills, it is no surprise that the UK is now faced with the current personal debt crisis”.
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