UK homebuyers spend a fifth (21%) of their gross income on mortgage repayments according to new research.
The latest UK Finance Lending Where We Live report revealed affordability is at the tightest level since 2008, with significant regional differences.
It reveals there were 723,000 house purchase mortgages advanced in 2025, an increase of 17% year-on-year.
While the average borrower spends 21.3% of their gross income on mortgage repayments, the most expensive local authorities are North Norfolk and Hillingdon, where borrowers spend more than 25% of their gross monthly income.
Seven of the 10 most affordable areas are in Scotland while London borrowers have the highest average mortgage debt at £280,000.
In London, the typical borrower has almost £70,000 more mortgage debt than in the South East, the region with the next highest level. Meanwhile, Northern Ireland had the lowest average mortgage debt at £99,500.
Between 12 to 14% of borrowers in most regions are on variable rates. However, in London the proportion is 16% and in Northern Ireland it’s 18%.
Mary-Lou Press, president of NAEA Propertymark (National Association of Estate Agents), said: “Buying a home is becoming increasingly difficult for many households, with mortgage affordability now stretched to levels not seen since 2008.
“Higher interest rates and the challenge of saving for a deposit mean many people who could afford monthly repayments are still locked out of buying. It’s no longer just about income; access to upfront cash is becoming the biggest barrier.
“Property professionals are also seeing clear regional differences. In more affordable parts of the UK, buyers are still active, but in higher-value areas such as London and the South East, stretched affordability is having a much greater impact, slowing activity and forcing buyers to adjust expectations.
“There’s still strong demand to own a home, but without changes to lending rules and more homes being built, many first-time buyers may continue to struggle to get on the ladder.”
James Tatch, head of analytics at UK Finance, said: “It’s been challenging times for those trying to buy a property in recent years, with affordability pressures weighing heavy. But the pain is not felt equally across the country. Property prices, wages and demographics vary greatly across and within regions. All of these have an impact on affordability and if you’re a landlord, how profitable your investment property is.
“The UK housing market faces both challenges and opportunities at a national and local level, and understanding these local markets enables better decision making from government, local authorities and others. We look forward to continuing our work with these stakeholders to improve the mortgage market.
Joe Pepper, UK CEO of PEXA, said: “This report highlights how much the homebuying experience varies across the UK, underlining the importance of understanding local markets to support better decision-making. As the industry continues to digitise, there is a real opportunity to create a more efficient, transparent and responsive housing market for borrowers across the country.”