Homeowners are set to spend the highest percentage of their income on their mortgage in decades after the average rate on home loans exceeded 6%.
Anyone taking on a new mortgage faces spending 25% of household income on their mortgage, the most since rates were 15.4% in February 1990, analysis by BuiltPlace said.
Even though mortgage rates were more than twice what they are now, loans are much larger relative to people’s incomes.
Chancellor Kwasi Kwarteng has called the heads of the UK’s largest retail banks to a meeting on Thursday to discuss turbulence in the mortgage market following his mini-Budget at the end of last month.
