There were wide regional variations in affordability of mortgages
Mortgages are at their most affordable for 14 years after lenders slashed their rates, a report has found.
The study by the Halifax said payments accounted for 27% of average incomes in the second quarter of 2013 compared with a high of 48% in 2007.
The bank said lower mortgage rates and a fall in house prices were the main reasons behind the improved situation.
A government scheme called Funding for Lending also encouraged lenders to cut rates after it was launched a year ago.
Craig McKinlay, mortgage director for Halifax, part of Lloyds Banking Group, said: "Substantial mortgage rate reductions and lower house prices have led to a significant improvement in mortgage availability since the peak of the housing market six years ago.
"The Funding for Lending scheme has helped lenders to cut mortgage rates, causing a further modest improvement in affordability over the past year despite the modest rise in house prices nationally."
'Turned corner'The average share of mortgage payments as a proportion of income for new borrowers over the past 30 years is 36%.
Mortgage payments for new borrowers were most affordable in Northern Ireland at 17% of income, followed by Scotland (19%), Yorkshire and the Humber (22%) and the North West (23%).
London was the highest at 36%, with the South East at 34% and the South West at 32%. The average in Wales was 27%.
Camden in north London was the least affordable area in the UK with mortgage payments at 53% of income.
East Ayrshire in Scotland and Omagh in Northern Ireland were the most affordable at 14.7% of earnings.
Housing Minister Mark Prisk said: "This is another clear sign that the housing market has turned a corner, alongside new figures showing the numbers of new homes started is up by a third compared to last year and the numbers of first time buyers are at their highest since 2007."
Source: BBC News - Business http://www.bbc.co.uk/news/business-23736707#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
