"The research highlights a divide between the North and the South, with those in the South having to wait longer to reach ‘mortgage freedom’ than their counterparts in the North"
Has he just won the lottery? Clinched that big deal that he's been chasing for months? Perhaps he just really likes his tie?
No, this man like many others around the UK is deliriously celebrating Mortgage Freedom Day.
You're probably all asking 'What is it, can I celebrate too?' now aren't you.
OK, so today (19 April) is UK ‘Mortgage Freedom’ Day. The day when new borrowers will have earned enough to pay off the annual cost of their mortgage. Hurrah!
How do we know this?
According to research conducted by Halifax, the average annual mortgage repayment cost is £7,968 and the average net annual income is £26,810. Halifax has calculated that today homeowners will have earned enough, on average, to cover their mortgage payments for the rest of 2017.
However, there is a wide variation in ‘Mortgage Freedom’ Days across the country. Homeowners in Scotland can crack open the bubbly on 14 March. Northern Ireland on 15 March, followed 10 days later by North and Yorkshire and Humber on 25 March.
National ‘Mortgage Freedom’ Days – 2017
|
Nation |
‘Mortgage Freedom’ Day |
|
|
Scotland |
14 March 2017 |
|
|
Northern Ireland |
15 March 2017 |
|
|
Wales |
23 March 2017 |
|
|
England |
27th April 2017 |
|
|
UK |
19 April 2017 |
Put that party popper down London. Your Mortgage Freedom day doesn't fall until 27th June.
Chris Gowland, Mortgages Director, Halifax, said: “Our research is a simple way of comparing mortgage and rent payments, quite often the largest financial commitment people make, across the UK using average regional earnings.
Whilst it excludes other living costs, the research highlights a divide between the North and the South, with those in the South having to wait longer to reach ‘mortgage freedom’ than their counterparts in the North.”
‘Mortgage Freedom’ across local authority districts
At local authority district level, new borrowers in West Dunbartonshire, Scotland, reached ‘mortgage freedom’ first (26 February 2017).
Seven of the 10 earliest ‘Mortgage Freedom’ Days this year took place in Scotland, including North Lanarkshire (26 February) and East Ayrshire (28 February) and Renfrewshire (2 March).
The remaining three local authority areas are Copeland in Cumbria (27 February), Blaenau Gwent (2 March) and Merthyr Tydfil (4 March) in Wales. On the other side of the border, homeowners in London have the longest to wait. Haringey homeowners don’t reach ‘Mortgage Freedom’ until 6 September, preceded by those in Brent (30 August) and Camden (26 August).
#poll#
But what if I don't have a mortgage and I rent? Can I wave my fist about in ecstasy too?
Well renters your luck is in....
Rental Freedom Day
As with ‘Mortgage Freedom’ Day, ‘Rental Freedom’ Day varies across the country. Those in the North achieved ‘rental freedom’ the first this year (6 April), swiftly followed by their counterparts in Yorkshire and the Humber (7 April) and Scotland (13 April). Once again, Londoners have the longest to wait with tenants not achieving ‘rental freedom’ until 29 July.
Chris Gowland, Mortgages Director, Halifax, added: “As our research confirms, homeownership is still cheaper than renting. ‘Rental Freedom’ Day falls 17 days after ‘Mortgage Freedom’ Day, showing that, despite barriers to property ownership, homeowners are still better off than renters.”
So there you have it. Reason to celebrate I'm sure you'll all agree.
