South West London has £109,134.39 in approximate mortgage debt per household, research has found.
According to research from bridginginfinancelondon.com, which leveraged UK Finance, Office for National Statistics (ONS) and local authority data, Kingston upon Thames took the second spot with £95,614.50, followed by East Central London with £91,374.77.
The figure was calculated by dividing the total amount of outstanding loan payments by the number of households in each local authority.
The Southern regions dominated the top 10, with eight of the top 10 in London and the remainder coming from the South East.
|
Approximate mortgage debt per household |
|||
Matthew Archer, managing director of bridgingfinancelondon.com, said: “Areas with higher house prices typically have higher levels of mortgage debt, because the amount you take out for your mortgage loan is directly tied to the cost of the house that you’re buying.
“Additionally, some areas may be more likely to have fixed mortgage rate deals, which ensure a consistent repayment rate, as opposed to variable rate deals that increase in interest, adding to the amount of debt a homeowner owes.
“Since mortgage expense correlates with local property value, London dominates the national ranking of areas with the most mortgage debt, occupying eight of the top 10 spots. The South East claims the other two, with St Albans and Slough ranking sixth and eighth, respectively. Harrogate is the highest placing Northern city, sitting at number 37, whereas Edinburgh is the top city outside of England at number 43.”
He continued: “Another factor to consider is the average age of the local population, as older homeowners will have likely paid off more of their mortgage loan. Since London and the surrounding areas are home to many young working professionals, they will be less likely to have paid off a significant chunk of their mortgage. On the other hand, according to 2023 ONS figures, Wales had the oldest population in the UK, which could explain why no Welsh areas appear in the top 50.
“If you’re a prospective homeowner, it’s important to remember that a lower mortgage debt starts with buying a property that is more affordable and suits your financial situation. Additionally, all homeowners should ensure that they are on the best rate possible. Fixed rate mortgages that last for as long as possible are ideal, as you pay a set rate for a determined period of time without changes in interest.
“While mortgage repayments can be daunting and significantly impact your finances, there are ways that you can make them more manageable. If you are unsure about your current mortgage rate or are struggling with the cost, speak to a mortgage broker or adviser, as they will search the market and potentially be able to find you better deals.”