Annual mortgage payments down £950 since 2008

Average annual mortgage payments have fallen by nearly a quarter since 2008, research from the Halifax has revealed.

Halifax found that average annual mortgage payments have fallen by £950 (21%) over the past five years from £4,521 in 2008 to £3,571 in 2013.

The research also found that the typical annual cost associated with owning and running a home in the UK has risen by 1.9% from £9,411 in 2012 to £9,591. The increase was, however, less than the 2.7% rise in consumer prices over the same period.

This was the third successive annual increase in the cost of owning a home following the decline recorded between 2008 and 2010 which was driven by the reduction in mortgage rates during this period.

Martin Ellis, housing economist at Halifax, said: "The typical costs of owning and running a home have again increased slightly over the past year although this rise was below the general increase in the cost of living.

"Overall, the cost of owning a home has increased by 2% over the past five years representing a significant decline in real terms.

“Lower mortgage payments have largely offset increases in other items of housing-related expenditure, such as the substantial rises in electricity and gas bills."

Mortgage payments share in total housing costs have reduced from 48% in 2008 to 37% in 2013. In contrast the share of electricity and gas bills has risen from 12% to 18%.

Peter Lawrence at Lawrence Rand said: “These figures show that the costs of home ownership over the last five years has become more affordable in real terms despite challenging economic conditions and low or non-existent salary increases during this period.”