TODAY marks Mortgage Freedom Day across the UK where new borrowers have earned enough money to cover their mortgage payments for the next year – but Scotland celebrated over a month ago.
In Scotland, new borrowers in West Dunbartonshire were the first to celebrate this year after just 58 days into the new year on 27th February.
North Ayrshire, Inverclyde, East Ayreshire and North Lanarkshire made up the rest of the top five.
Even though all local authorities in Scotland have seen their ‘Mortgage Freedom’ days come and go this year, those in East Lothian and the City of Edinburgh celebrated on 9th March, and those in Midlothian on 2nd April.
Graham Blair, Head of Mortgages, Bank of Scotland said: “If every penny earned this year went towards their mortgage, the average Scot would have paid their mortgage for the year, on the 8th of March.
“While on its own the significance of this date is hard to comprehend, comparing ‘Mortgage Freedom’ days year-to-year allows for quick comparisons on affordability, specifically how much people are earning against how much they are spending on their mortgage.”
The research, conducted annually by Halifax, is based on the current average annual mortgage repayment cost of £8,729 and the average net annual income of £28,752.
Since 2014, the date of ‘Mortgage Freedom’ day for Scotland has been in early March with little movement, suggesting that affordability in the region has remained relatively stable.