The UK has seen a 'sizeable' improvement in the affordability of mortgage payments despite a squeeze on credit, according to a report by ratings agency Fitch.
Global Market Outlook for Housing and Mortgage Lending highlighted the UK as a country which had seen a moderate improvement in affordability measured by the debt-to-income ratio and predicted conditions would remain favourable in the coming year. It stated: “Mortgage affordability has improved markedly since 2007 despite the continued downward forces on real wages. "This is the result of both a failure of house prices, on average, to recover their pre-crisis levels, and the record low interest rate environment. “However, while affordability in general terms is good, access to cred...
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