29 Jun

Drop in house costs 'due to lower mortgage payments'

Drop in house costs 'due to lower mortgage payments'

The drop in the cost of running a house over the last two years is the result of lower mortgage payments, it has been suggested.

Housing economist at Halifax Suren Thiru commented on the company's recent results which showed that since 2008 there has been a 19 per cent decline in mortgage expenses, which include interest and capital repayments.

The expert said: "Over the last two years, the cost associated with owning and running a home in the UK has fallen, entirely as a consequence of reduced mortgage payments."

According to the findings, the average mortgage rate paid by homeowners fell by 2.13 percentage points between April 2008 and April 2010 - from 5.8 per cent to 3.67 per cent.

It was added that as mortgage payments account for 41 per cent of total housing expenses, lower loan costs helped to "provide relief to homeowners during the economic downturn".

Meanwhile, the Bank of Scotland revealed that the average cost of housing has fallen by four per cent in Scotland in the same period, with mortgage outgoings accounting for 36 per cent of all household finances.

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