![Stark figures show mortgage repayment burden for borrowers](https://www.introducertoday.co.uk/upload/images/24%2005%2007%20%2004.jpg)
Higher mortgage rates are a drag on house price growth says Zoopla – and it’s produced startling figures to prove it.
The average home buyer using a 70% loan to value mortgage faced annual mortgage repayments that are 61% higher today than three years ago.
The annual mortgage repayments have risen from £7,100 to £11,400.
Two thirds of this increase is driven by higher mortgage rates, but a third is down to the fact that house prices are 13% higher than three years ago.
At a regional and country level there has been a 50% to 70% increase in mortgage repayments for a typical buyer between 2021 and 2024 with the largest impact felt in southern England where house prices are simply higher.
The annual cost of mortgage repayments for an average priced home is more than £5,000 a year higher in 2024 than 2021 across the South West, South East and East of England.
This rises to a high of an extra £7,500 in London.
Across other regions and countries of the UK, the increase is lower, ranging between £2,350 and £3,900 a year.
While underlying household incomes will vary by area, lower mortgage increases are one reason that market activity and prices are holding up better in more affordable markets with lower house prices.
“The squeeze on housing affordability from higher mortgage rates, lower income growth and rising living costs is keeping house prices in check across southern England” says the portal.