Borrowers pass Mortgage Freedom Day

Posted: 20 Apr 2015 17:04:07 GMT

            Property News - Borrowers pass Mortgage Freedom Day

UK mortgage borrowers have welcomed Mortgage Freedom Day.

Home buyers across the UK have celebrated Mortgage Freedom Day.

April 18th was officially the date when the average homeowner will have become 'mortgage free' - based on the premise that they paid solely their mortgage out of their monthly income from January 1st until this point.

This date was highlighted during research carried out by lender Halifax, which showed that the typical mortgage borrower will pay £7,567 off their mortgage during a 12-month period and highlighted that the the average annual income in the UK now stands at £25,588.

As such, if individuals only paid their mortgage out of their monthly income, it would take almost one-third of the year to reach the point where this financial obligation had been met.

Interestingly, Mortgage Freedom Day in 2015 has been pushed back by eight days from 2014, when this milestone was reached on April 10th.

Craig McKinlay, mortgage director at Halifax, commented: "While monthly mortgage and rental costs account for the majority of many people’s household budgets, Mortgage Freedom Day provides a different perspective on how much we spend on these costs over the course of a year."

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