Happy 'Mortgage Freedom Day' to you!

Happy 'Mortgage Freedom Day' to you!
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

Look at this man. Just look at him. Look how happy he is, shouting and waving his fist about in ecstasy.

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).

How will you celebrate Mortgage Freedom Day?

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.

Join our mailing list:

Leave a comment



Latest Comments

brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

view article
IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

view article
IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

view article
cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

view article
Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

view article
NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

view article
Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

view article
Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

view article
jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

view article
SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

view article
Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

view article
AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

view article

Related stories

More articles from Property