Based on the average annual mortgage repayment cost of £6,954 and the net annual income of £25,603, Halifax has calculated that those with a mortgage will have today earned enough on average to cover their mortgage payments for the rest of 2014.
Mortgage Freedom Day this year occurs three days earlier than in 2013 (13th April) and almost a month earlier than five years ago (8th May 2009).
Craig McKinlay, Mortgage Director, 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.
“Our research shows that today, if people had put everything they’d earned since the start of the year towards their mortgage, the average homeowner would be mortgage free for the remainder of the year, which is a reassuring thought.”
Mortgage Freedom Day comes early in Northern Ireland…
Unfortunately for some homeowners the wait is a bit longer; in four local authorities, this year’s Mortgage Freedom Day doesn’t arrive until after half of the year has passed. In Haringey (1st July), Kensington and Chelsea (13th July), Camden (24th July) and Hammersmith and Fulham (30th July).
At the other end of the scale, Armagh had the earliest Mortgage Freedom Day, which occurred on 13th February – five and a half months earlier than Hammersmith and Fulham. Six of the ten earliest Mortgage Freedom Days this year take place in Northern Ireland, such as in Ballymoney (15th February) and Craigavon (18th February). The remaining four are in Scotland; including East Ayrshire (19th February) and West Dunbartonshire (21st February).
Only one local area in the earliest 150 Mortgage Freedom Days is in southern England; Fenland in Cambridgeshire (23rd March).
Mortgage Freedom Day around the country…
Nationally, there is a one month difference between the earliest Mortgage Freedom Day in Northern Ireland (10th March) and England and Wales (both 10th April). For homeowners in the South East (2nd May) and London (20th May) Mortgage Freedom Day occurs around six to eight weeks after northern England.
Renters have a longer wait….
Renters will have to wait until 12th May to have earned enough to pay off the annual rental costs. In all regions of England, Rent Freedom Day comes after Mortgage Freedom Day. The shortest difference is one week in the West Midlands (15th April against 8th April) with the longest being 46 days in London (5th July against 20th May).
