Has the UK housing market recovered from the 2007/2008 financial crash? We explore all the latest mortgage statistics to see if the market has bounced back and which mortgage lenders are currently offering the best deals.
Overview of mortgages in the UK
- The Bank of England has increased interest rates to 2.25% as of September 2022.
- Over 900 mortgage products have been withdrawn from the market in September 2022.
- The number of mortgages with arrears of over 2.5% of the remaining balance rose by 15 a day from the beginning of the year till March 2021.
- The outstanding value of all residential mortgage loans was £1.56 trillion as of the end of Q1 2021, which is 3.6 % higher than the year before.
- The value of new mortgage commitments is £77.5 billion, which is 15% higher than the year before.
- The proportion of mortgages in arrears fell to its lowest amount since 2007, at 0.94% (Q3 2019).
- The value of gross mortgage advances in Q1 2021 was £83.3 billion, 26.5% higher than it was in Q1 2020 and the highest level since Q4 2007.
- In April 2021, the 10-year mortgage rate was 2.58%. This is a slight increase from March 2020 when it stood at 2.36%.
- The average UK house price reached a peak of £256,000 in March 2021.
- There were 469,000 homeowner remortgages from July 2018 – June 2019.
- Of those mortgages, 231,000 were equity withdrawn remortgages and 238,000 were refinancing remortgages.
- On average, there are 39,000 homeowner remortgages every month in the UK.
- Over a third (38.9%) of residential loans were remortgages in Q1 2019.

Mortgage statistics: Interest rates
March 2020 saw 10-year fixed mortgage rates drop to their lowest at 2.36%, which was good news for those looking to remortgage or buy a property for the first time. These rates have been creeping up ever since, reaching 2.58% in April 2021. Interestingly, 2-year variable rates rose to a high of 2.37%, which had not been seen since 2014. For 2-year, 3-year and 5-year fixed rates, there was a steady decline from 2014 to 2020. These interest rates started to rise again as 2020 came to an end. At the beginning of 2021, the decline resumed again, with percentages dropping from 2% to just over 1.5% for all.
Mar 14 |
2.68 |
2.37 |
2.97 |
3.48 |
- |
Jun 14 |
2.71 |
2.6 |
3.01 |
3.69 |
- |
Sep 14 |
2.44 |
2.46 |
2.94 |
3.61 |
4.06 |
Dec 14 |
1.6 |
2.08 |
2.89 |
3.21 |
4 |
Mar 15 |
1.56 |
1.99 |
2.63 |
2.98 |
3.47 |
Jun 15 |
1.66 |
1.83 |
2.54 |
2.82 |
3.24 |
Sep 15 |
1.74 |
1.91 |
2.4 |
2.84 |
3.35 |
Dec 15 |
1.78 |
1.9 |
2.26 |
2.75 |
3.36 |
Mar 16 |
1.67 |
1.9 |
2.14 |
2.7 |
3.19 |
Jun 16 |
1.62 |
1.75 |
2.13 |
2.54 |
3.1 |
Sep 16 |
1.54 |
1.59 |
1.92 |
2.34 |
2.84 |
Dec 16 |
1.48 |
1.45 |
1.79 |
2.26 |
2.98 |
Mar 17 |
1.42 |
1.37 |
1.68 |
2.15 |
2.8 |
Jun 17 |
1.42 |
1.48 |
1.7 |
1.99 |
2.82 |
Sep 17 |
1.46 |
1.4 |
1.6 |
1.9 |
2.72 |
Dec 17 |
1.69 |
1.57 |
1.7 |
2.07 |
2.66 |
Mar 18 |
1.58 |
1.53 |
1.77 |
2.02 |
2.76 |
Jun 18 |
1.56 |
1.74 |
1.8 |
2.03 |
2.74 |
Sep 18 |
1.68 |
1.71 |
1.81 |
2.01 |
2.68 |
Dec 18 |
1.7 |
1.73 |
1.81 |
2.01 |
2.64 |
Mar 19 |
1.61 |
1.7 |
1.8 |
2.03 |
2.56 |
Jun 19 |
1.6 |
1.64 |
1.77 |
1.97 |
2.59 |
Sep 19 |
2.03 |
1.55 |
1.66 |
1.79 |
2.58 |
Dec 19 |
1.94 |
1.42 |
1.54 |
1.67 |
2.47 |
Mar 20 |
2.37 |
1.4 |
1.56 |
1.66 |
2.36 |
Apr 20 |
1.87 |
1.38 |
1.59 |
1.67 |
2.42 |
May 20 |
1.59 |
1.42 |
1.64 |
1.7 |
2.4 |
Jun 20 |
1.66 |
1.41 |
1.62 |
1.69 |
2.4 |
Jul 20 |
1.78 |
1.44 |
1.7 |
1.7 |
2.39 |
Aug 20 |
1.68 |
1.59 |
1.81 |
1.79 |
2.39 |
Sep 20 |
1.63 |
1.75 |
1.88 |
1.92 |
2.39 |
Oct 20 |
2.08 |
1.94 |
2.01 |
2.05 |
2.46 |
Nov 20 |
2.14 |
1.92 |
2.05 |
2.05 |
2.52 |
Dec 20 |
2.19 |
1.86 |
2.04 |
2 |
2.53 |
Jan 21 |
2.16 |
1.82 |
2.1 |
1.97 |
2.53 |
Feb 21 |
2.16 |
1.62 |
1.72 |
1.8 |
2.53 |
Mar 21 |
2.12 |
1.56 |
1.68 |
1.75 |
2.55 |
Apr 21 |
2.1 |
1.52 |
1.67 |
1.74 |
2.58 |
Average house prices
The average price of a house in England has been trending upwards since the financial crash. In March 2021, it was £274,615, up from £249,121 in March 2020 and £242,982 in March 2019. In comparison to Scotland, Northern Ireland and Wales, the average house price in England is much higher. In March 2021, the average house price in Wales was £185,431. In Scotland, it was £166,566 and in Northern Ireland, it was £149,178.
2005 Jan |
|
£158,572 |
£123,815 |
£93,982 |
2005 Feb |
|
£158,609 |
£121,070 |
£93,554 |
2005 Mar |
|
£159,642 |
£123,052 |
£96,638 |
2005 Apr |
|
£161,336 |
£124,088 |
£102,739 |
2005 May |
|
£163,064 |
£126,541 |
£103,815 |
2005 Jun |
|
£164,069 |
£127,477 |
£107,989 |
2005 Jul |
|
£165,756 |
£130,529 |
£110,003 |
2005 Aug |
|
£166,440 |
£131,874 |
£110,101 |
2005 Sep |
|
£166,168 |
£131,307 |
£110,188 |
2005 Oct |
|
£165,637 |
£131,511 |
£109,598 |
2005 Nov |
|
£166,303 |
£130,826 |
£108,994 |
2005 Dec |
|
£167,244 |
£129,673 |
£110,714 |
2006 Jan |
|
£166,544 |
£129,914 |
£109,380 |
2006 Feb |
|
£166,896 |
£132,218 |
£107,355 |
2006 Mar |
|
£168,001 |
£133,581 |
£111,484 |
2006 Apr |
|
£171,129 |
£134,018 |
£116,209 |
2006 May |
|
£172,699 |
£135,043 |
£118,876 |
2006 Jun |
|
£174,231 |
£138,538 |
£120,454 |
2006 Jul |
|
£176,164 |
£138,355 |
£122,702 |
2006 Aug |
|
£177,603 |
£140,227 |
£124,427 |
2006 Sep |
|
£178,275 |
£140,180 |
£126,392 |
2006 Oct |
|
£178,927 |
£139,801 |
£123,482 |
2006 Nov |
|
£179,718 |
£141,553 |
£125,396 |
2006 Dec |
|
£182,031 |
£142,521 |
£127,707 |
2007 Jan |
|
£181,824 |
£139,760 |
£126,699 |
2007 Feb |
|
£182,397 |
£143,455 |
£124,280 |
2007 Mar |
|
£183,712 |
£141,453 |
£129,092 |
2007 Apr |
|
£186,711 |
£144,844 |
£135,581 |
2007 May |
|
£188,814 |
£145,951 |
£138,765 |
2007 Jun |
|
£190,822 |
£147,402 |
£141,897 |
2007 Jul |
|
£193,360 |
£147,245 |
£141,815 |
2007 Aug |
|
£194,328 |
£150,316 |
£143,287 |
2007 Sep |
|
£194,764 |
£149,164 |
£142,294 |
2007 Oct |
|
£194,700 |
£149,825 |
£139,547 |
2007 Nov |
|
£194,502 |
£148,509 |
£141,524 |
2007 Dec |
|
£194,373 |
£147,362 |
£139,736 |
2008 Jan |
|
£191,750 |
£146,364 |
£138,388 |
2008 Feb |
|
£190,066 |
£144,636 |
£137,508 |
2008 Mar |
|
£188,657 |
£141,503 |
£137,848 |
2008 Apr |
|
£189,115 |
£141,804 |
£139,328 |
2008 May |
|
£189,777 |
£142,749 |
£145,641 |
2008 Jun |
|
£187,350 |
£141,876 |
£141,555 |
2008 Jul |
|
£185,844 |
£137,901 |
£139,710 |
2008 Aug |
|
£181,494 |
£139,660 |
£137,784 |
2008 Sep |
|
£177,232 |
£132,625 |
£132,420 |
2008 Oct |
|
£173,249 |
£133,991 |
£133,839 |
2008 Nov |
|
£168,230 |
£131,304 |
£129,820 |
2008 Dec |
|
£165,795 |
£129,403 |
£125,767 |
2009 Jan |
|
£162,673 |
£125,021 |
£124,484 |
2009 Feb |
|
£160,956 |
£124,029 |
£120,994 |
2009 Mar |
|
£159,340 |
£123,104 |
£125,727 |
2009 Apr |
|
£160,701 |
£125,355 |
£126,975 |
2009 May |
|
£162,740 |
£127,350 |
£130,699 |
2009 Jun |
|
£164,536 |
£125,948 |
£132,049 |
2009 Jul |
|
£167,673 |
£128,279 |
£133,126 |
2009 Aug |
|
£169,603 |
£128,768 |
£132,658 |
2009 Sep |
|
£171,214 |
£129,232 |
£131,727 |
2009 Oct |
|
£172,314 |
£130,696 |
£132,914 |
2009 Nov |
|
£172,818 |
£131,131 |
£134,183 |
2009 Dec |
|
£174,136 |
£132,978 |
£133,037 |
2010 Jan |
|
£174,458 |
£127,733 |
£128,973 |
2010 Feb |
|
£175,248 |
£127,958 |
£126,524 |
2010 Mar |
|
£174,765 |
£130,677 |
£128,897 |
2010 Apr |
|
£176,796 |
£131,747 |
£133,162 |
2010 May |
|
£177,754 |
£132,483 |
£132,977 |
2010 Jun |
|
£178,655 |
£131,877 |
£134,249 |
2010 Jul |
|
£180,519 |
£134,036 |
£135,444 |
2010 Aug |
|
£180,807 |
£132,453 |
£133,825 |
2010 Sep |
|
£180,231 |
£133,167 |
£133,756 |
2010 Oct |
|
£178,102 |
£133,140 |
£133,750 |
2010 Nov |
|
£176,301 |
£127,443 |
£131,509 |
2010 Dec |
|
£176,036 |
£128,963 |
£129,758 |
2011 Jan |
|
£174,442 |
£127,771 |
£129,746 |
2011 Feb |
|
£173,811 |
£127,961 |
£125,916 |
2011 Mar |
|
£173,046 |
£125,133 |
£126,172 |
2011 Apr |
|
£175,490 |
£129,222 |
£129,848 |
2011 May |
|
£174,668 |
£128,085 |
£129,832 |
2011 Jun |
|
£174,838 |
£128,270 |
£131,209 |
2011 Jul |
|
£177,164 |
£128,564 |
£133,429 |
2011 Aug |
|
£177,335 |
£129,395 |
£132,518 |
2011 Sep |
|
£176,783 |
£131,017 |
£131,949 |
2011 Oct |
|
£175,171 |
£127,698 |
£129,122 |
2011 Nov |
|
£175,200 |
£130,415 |
£128,206 |
2011 Dec |
|
£174,812 |
£127,397 |
£125,924 |
2012 Jan |
|
£174,179 |
£127,097 |
£125,728 |
2012 Feb |
|
£174,161 |
£126,324 |
£121,886 |
2012 Mar |
|
£174,323 |
£126,231 |
£125,412 |
2012 Apr |
|
£176,543 |
£128,163 |
£125,134 |
2012 May |
|
£177,026 |
£128,349 |
£126,455 |
2012 Jun |
|
£178,696 |
£129,986 |
£128,361 |
2012 Jul |
|
£179,756 |
£129,342 |
£127,491 |
2012 Aug |
|
£180,129 |
£128,860 |
£126,734 |
2012 Sep |
|
£179,563 |
£127,952 |
£125,823 |
2012 Oct |
|
£178,412 |
£126,881 |
£124,617 |
2012 Nov |
|
£178,662 |
£128,452 |
£123,166 |
2012 Dec |
|
£178,406 |
£127,143 |
£122,180 |
2013 Jan |
|
£176,816 |
£127,584 |
£122,594 |
2013 Feb |
|
£177,203 |
£125,702 |
£120,180 |
2013 Mar |
|
£178,189 |
£126,975 |
£121,357 |
2013 Apr |
|
£179,900 |
£126,671 |
£123,409 |
2013 May |
|
£180,621 |
£128,640 |
£125,358 |
2013 Jun |
|
£182,088 |
£129,380 |
£127,118 |
2013 Jul |
|
£184,274 |
£128,501 |
£128,421 |
2013 Aug |
|
£185,642 |
£130,842 |
£129,781 |
2013 Sep |
|
£186,082 |
£130,085 |
£127,777 |
2013 Oct |
|
£185,358 |
£128,089 |
£127,413 |
2013 Nov |
|
£186,260 |
£130,029 |
£128,629 |
2013 Dec |
|
£188,544 |
£128,581 |
£127,018 |
2014 Jan |
|
£188,265 |
£131,603 |
£127,007 |
2014 Feb |
|
£189,347 |
£132,349 |
£125,034 |
2014 Mar |
|
£190,037 |
£130,464 |
£126,650 |
2014 Apr |
|
£194,251 |
£132,656 |
£129,596 |
2014 May |
|
£196,171 |
£135,527 |
£131,677 |
2014 Jun |
|
£197,951 |
£135,019 |
£133,444 |
2014 Jul |
|
£200,825 |
£135,571 |
£135,161 |
2014 Aug |
|
£203,406 |
£136,710 |
£135,575 |
2014 Sep |
|
£203,639 |
£138,218 |
£134,807 |
2014 Oct |
|
£203,311 |
£136,630 |
£135,016 |
2014 Nov |
|
£202,704 |
£136,898 |
£133,334 |
2014 Dec |
|
£203,346 |
£136,904 |
£132,669 |
2015 Jan |
|
£202,856 |
£136,148 |
£134,956 |
2015 Feb |
|
£203,424 |
£135,611 |
£132,572 |
2015 Mar |
|
£203,360 |
£135,231 |
£139,792 |
2015 Apr |
|
£205,936 |
£137,039 |
£134,030 |
2015 May |
|
£208,265 |
£137,553 |
£135,678 |
2015 Jun |
|
£209,874 |
£138,478 |
£136,923 |
2015 Jul |
|
£213,518 |
£139,213 |
£139,051 |
2015 Aug |
|
£215,756 |
£140,651 |
£138,564 |
2015 Sep |
|
£216,350 |
£140,248 |
£138,246 |
2015 Oct |
|
£216,676 |
£140,912 |
£137,660 |
2015 Nov |
|
£218,500 |
£140,974 |
£138,475 |
2015 Dec |
|
£219,582 |
£141,520 |
£136,702 |
2016 Jan |
|
£220,361 |
£140,015 |
£136,790 |
2016 Feb |
|
£220,627 |
£142,712 |
£134,625 |
2016 Mar |
|
£222,663 |
£141,617 |
£136,243 |
2016 Apr |
|
£223,784 |
£141,925 |
£136,446 |
2016 May |
|
£226,370 |
£144,296 |
£138,256 |
2016 Jun |
|
£228,430 |
£146,447 |
£140,234 |
2016 Jul |
|
£230,868 |
£146,353 |
£142,294 |
2016 Aug |
|
£231,176 |
£145,384 |
£140,881 |
2016 Sep |
|
£230,848 |
£144,976 |
£140,533 |
2016 Oct |
|
£229,944 |
£146,658 |
£139,631 |
2016 Nov |
|
£231,053 |
£146,278 |
£140,852 |
2016 Dec |
|
£231,922 |
£146,442 |
£138,206 |
2017 Jan |
|
£231,593 |
£146,395 |
£138,356 |
2017 Feb |
|
£232,696 |
£145,837 |
£136,011 |
2017 Mar |
|
£231,760 |
£147,794 |
£136,891 |
2017 Apr |
|
£235,021 |
£149,900 |
£141,091 |
2017 May |
|
£236,727 |
£147,428 |
£142,070 |
2017 Jun |
|
£238,595 |
£150,394 |
£143,634 |
2017 Jul |
|
£241,406 |
£151,028 |
£147,566 |
2017 Aug |
|
£242,628 |
£152,859 |
£147,234 |
2017 Sep |
|
£242,041 |
£153,227 |
£144,530 |
2017 Oct |
|
£242,003 |
£155,033 |
£145,058 |
2017 Nov |
|
£241,086 |
£153,109 |
£146,350 |
2017 Dec |
|
£242,378 |
£153,791 |
£145,235 |
2018 Jan |
|
£241,061 |
£153,128 |
£146,889 |
2018 Feb |
|
£241,989 |
£153,210 |
£145,982 |
2018 Mar |
|
£240,428 |
£154,022 |
£144,655 |
2018 Apr |
|
£242,396 |
£153,574 |
£148,427 |
2018 May |
|
£243,445 |
£154,756 |
£148,621 |
2018 Jun |
|
£244,962 |
£156,864 |
£149,960 |
2018 Jul |
|
£247,981 |
£158,626 |
£151,777 |
2018 Aug |
|
£248,620 |
£161,024 |
£152,138 |
2018 Sep |
|
£248,248 |
£160,265 |
£151,446 |
2018 Oct |
|
£247,757 |
£160,955 |
£151,528 |
2018 Nov |
|
£246,940 |
£160,158 |
£149,556 |
2018 Dec |
|
£246,380 |
£162,234 |
£148,269 |
2019 Jan |
|
£244,641 |
£158,548 |
£149,769 |
2019 Feb |
|
£244,427 |
£159,018 |
£146,892 |
2019 Mar |
|
£242,982 |
£159,904 |
£149,625 |
2019 Apr |
|
£244,662 |
£161,456 |
£150,794 |
2019 May |
|
£244,928 |
£161,628 |
£151,417 |
2019 Jun |
|
£245,846 |
£162,908 |
£152,680 |
2019 Jul |
|
£248,468 |
£164,440 |
£154,776 |
2019 Aug |
|
£249,221 |
£168,215 |
£154,195 |
2019 Sep |
|
£249,637 |
£164,414 |
£154,874 |
2019 Oct |
|
£248,842 |
£166,281 |
£153,953 |
2019 Nov |
|
£247,867 |
£168,516 |
£152,528 |
2019 Dec |
|
£248,097 |
£166,433 |
£150,287 |
2020 Jan |
|
£247,898 |
£163,205 |
£153,518 |
2020 Feb |
|
£246,739 |
£165,953 |
£149,582 |
2020 Mar |
|
£249,121 |
£167,040 |
£150,625 |
2020 Apr |
|
£246,441 |
£160,220 |
£151,478 |
2020 May |
|
£246,986 |
£162,741 |
£152,044 |
2020 Jun |
|
£250,865 |
£167,653 |
£154,871 |
2020 Jul |
|
£253,460 |
£169,281 |
£154,059 |
2020 Aug |
|
£256,143 |
£173,878 |
£154,391 |
2020 Sep |
|
£258,563 |
£170,982 |
£160,065 |
2020 Oct |
|
£260,626 |
£177,203 |
£163,171 |
2020 Nov |
|
£264,077 |
£179,589 |
£164,564 |
2020 Dec |
|
£267,363 |
£182,474 |
£162,098 |
2021 Jan |
|
£267,675 |
£182,041 |
£163,954 |
2021 Feb |
|
£269,976 |
£179,857 |
£161,970 |
2021 Mar |
|
£274,615 |
£185,431 |
£166,566 |
House-prices-to-earnings ratio
With the cost of a house on the rise, how have prices moved relative to our earnings? The house-price-to-earnings ratio compares the median house price to the median gross annual income. Over the 16 years from 2002 to 2018, the house-price-to-earnings ratio has risen from 5 to 7.8. This means that there has been more than a 50% rise in the cost of a house relative to our earnings.
2002 |
5.05 |
2003 |
5.84 |
2004 |
6.52 |
2005 |
6.73 |
2006 |
6.95 |
2007 |
7.16 |
2008 |
6.89 |
2009 |
6.35 |
2010 |
6.83 |
2011 |
6.73 |
2012 |
6.76 |
2013 |
6.73 |
2014 |
6.95 |
2015 |
7.37 |
2016 |
7.59 |
2017 |
7.77 |
2018 |
7.83 |
How does your region compare?
The house-price-to-earnings ratio differs by region, with London being the region with the highest ratio of over 13 in 2018. The North East, on the other hand, is the most affordable region relative to earnings, with a ratio of just over 5.
England and Wales |
7.83 |
England |
8 |
North East |
5.29 |
North West |
5.82 |
Yorkshire and The Humber |
5.95 |
East Midlands |
6.7 |
West Midlands |
6.8 |
East |
9.12 |
London |
13.09 |
South East |
9.93 |
South West |
8.76 |
Wales |
5.73 |
Mortgage statistics: Number of approvals
By the end of 2020, as the UK entered another lockdown, unemployment rates reached a new low of 5% after a steady decline since March 2020. As jobs disappeared and salaries were cut, the number of people who were eligible for a mortgage also began to drop. To make it worse, the Bank of England also took a stricter approach when handing out loan approvals to potential buyers. Mortgage approvals were rising steadily at the beginning of 2020 but started decreasing in March when the number of approvals fell to 57,282 – a 22% drop. Even more shocking are the figures from April 2020, which show that the number of loan approvals dropped to just 16,130 – 72% less than in March. May saw loan approvals reach a disturbing low of 9,435 before climbing up again in June.
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Mortgages in arrears
In the first quarter of 2021, a majority of mortgages in arrears were owned by homeowners rather than those doing buy-to-let. Specifically, 77,640 homeowners had mortgages in arrears, while those with buy-to-let had just 5,970. Looking at the breakdown by arrear type, it’s clear that most homeowner and buy-to-let customers in the UK have 2.5–5% of their mortgage balance in arrears. 28,100 homeowner mortgages have 2.5–5% of their balance in arrears, and 2,680 buy-to-let mortgages have 2.5–5% of their balance in arrears.
This number begins to lessen as the percentage in arrears increases. Those with arrears of 7.5–10% have the smallest number of mortgages in the UK for both homeowners and buy-to-let customers, making this the most uncommon arrear percentage in the UK.
Homeowner |
77,640 |
Buy-to-let |
5,970 |
Mortgage statistics: What type of remortgages are people taking?
Remortgaging your house can be a way of releasing equity or simply changing the terms of your mortgage or switching providers. In the last 12 months, there were 469,000 homeowner remortgages. Of these, 231,000 were equity withdrawn remortgages and 238,000 were refinancing remortgages (with no money withdrawn).
Equity withdrawn remortgages |
231,350 |
Simple refinance |
238,160 |
Total number of remortgages |
469,510 |
Should Brits take a mortgage holiday?
Our analysis looks at what repayment holidays might mean in the long term for mortgage holders in 3 different scenarios:
- Scenario 1: First-time buyer, 1 year into their 30-year mortgage of £170,000.
- Scenario 2: Mid-late 30s with a family, with a 20-year mortgage worth £220,000.
- Scenario 3: Older homeowner, with 7 years left to pay their remaining mortgage balance of £55,000.
- Table 1: Mortgage scenarios
Taking these 3 scenarios into account, Table 1 below shows what the monthly repayments and total repayments would be in normal circumstances.
- Table 2: Taking a mortgage holiday
In response to the coronavirus pandemic, the government encouraged providers to offer mortgage holidays that last up to 3 months for those who request them. Finder has calculated how much monthly repayments would go up after a mortgage holiday for each of the 3 scenarios. Table 2 also shows how much would be paid over the whole lifetime of the mortgage in each case.
- Table 3: An alternative: Extending the length of the mortgage by 2 years
Instead of a mortgage holiday, some lenders will allow the term of a mortgage to be extended. So while you won’t be able to skip any payments like you would with a mortgage holiday, the monthly repayments would be permanently lower for the remainder of the mortgage term. But because the mortgage goes on for longer, the amount repaid in total would be more than if you had not extended the term. Table 3 below examines the costs of extending the mortgage for 2 years for each of the scenarios in question.
- Table 4: An alternative: The impact of a 6-month holiday
On 22 May 2020, the government announced that mortgage holidays could be extended for a further 3 months, meaning those that needed to could take a 6-month mortgage holiday in total. We looked at the impact of a 6-month holiday on monthly repayments and overall cost below.
Scenario 1: First-time buyer |
29 |
£170,000.00 |
£254,739.48 |
£732.01 |
Scenario 2: Mid-late 30s with family |
20 |
£220,000.00 |
£292,826.40 |
£1,220.11 |
Scenario 3: Older homeowner |
7 |
£55,000.00 |
£61,045.32 |
£726.73 |
Scenario 1: First-time buyer |
29 |
£170,000.00 |
£255,831.30 |
£741.54 |
Scenario 2: Mid-late 30s with family |
20 |
£220,000.00 |
£294,034.05 |
£1,240.65 |
Scenario 3: Older homeowner |
7 |
£55,000.00 |
£61,282.17 |
£756.57 |
Scenario 1: First-time buyer |
31 |
£170,000.00 |
£261,327.45 |
£702.49 |
Scenario 2: Mid-late 30s with family |
22 |
£220,000.00 |
£300,793.75 |
£1,139.37 |
Scenario 3: Older homeowner |
9 |
£55,000.00 |
£62,827.03 |
£581.73 |
Scenario 1 – First-time buyer (1 year in) |
29 |
£170,000.00 |
£256,927.50 |
£751.25 |
Scenario 2 – Early 40's with family |
20 |
£220,000.00 |
£295,247.16 |
£1,261.74 |
Scenario 3 – Late 50s looking to end of mortgage |
7 |
£55,000.00 |
£61,520.16 |
£788.72 |