Mortgage Insights

Affordability in Northern Ireland remains positive

We always like to start with a bit of good news, and the latest data collected from the Council of Mortgage Lenders, the Nationwide HPI and various newspaper reports paints a bright picture.

First-time buyers are typically borrowing £95,000 for property purchases and their average household income in Northern Ireland is £31,900.

Therefore, the typical income multiple is 2.9 x salary. and the average age of borrower for first-time property buying is 30 years old.

 Home-movers in Northern Ireland are, on average, borrowing £115,000, with their average household income sitting at £46,000.

The typical income multiple is 2.5 x salary and the average home-mover borrower is 39 years old.

 

First-time buyers are key driver in Northern Ireland 

They continue to be the key driver, accounting for a whopping 63% of lending for house purchase in Northern Ireland throughout quarter 1 2017 - that's the highest proportion since 2001.

First-time buyers accounted for 63% of lending for house purchase in Northern Ireland throughout quarter 1 2017 - highest in 16 years.

This is partly due to affordability being better in Northern Ireland than the UK overall as noted above.

Along with seasonal factors and a surge in activity ahead of stamp duty reform a year ago, the home mover picture may look a little more subdued, but activity is expected to pick up in the summer months.

 

Rates update

For First Time Buyers with a 10% deposit, interest rates are as low as 1.89% - subject to change.

Home-movers with a 10% deposit are getting interest rates as low as 1.89% - subject to change.

Remortgage rates with 25% equity rates are as low as 1.14% with some lenders - subject to change.

 

Northern Ireland's lowest ever mortgage rate?

The Yorkshire Building Society have launched a mortgage rate of 0.89% for 2 years, reported to be lowest ever in the UK and Northern Ireland.

This deal is restricted to house buyers borrowing no more than 65% of the property’s value, mortgage rates - and it isn't a fixed deal.