Mortgages in 2011 “most affordable” in a decade - Barclays

In an analysis of more than one million customers' accounts, the lender found that, on average, people paid out 15.4% of their take home pay last year to cover their monthly mortgage payments.

This compared to 2008 when it reached its highest point at 20.5%. The lowest point was in September 2011 when the average mortgage payment fell to 15.2%, or £488 a month.

In a survey commissioned by Barclays, it found that 83% of homeowners have room for manoeuvre should their circumstances or interest rates change and 64% find their mortgage affordable, compared to 52% this time last year.

In addition, 40% of homeowners think Bank Base Rate will rise in 2012, compared to 74% who were asked at the beginning of 2011 about the year ahead. A quarter of homeowners believe rates will start to rise in 2013.

Almost 75%, of homeowners said they have a plan in place for when interest rates start to rise, with around a third stating they will cut spending elsewhere by reducing their lifestyle budget and holidays to cover any increases.

Andy Gray (pictured), head of mortgages at Barclays said: "With the cheapest ever mortgage deals offered to homeowners last year and the fiercely competitive mortgage market it stands to reason that the average monthly mortgage payment was at its most affordable level in a decade.

"However Barclays is urging homeowners not to be complacent with this affordability and to act early on in 2012 to secure good mortgage deals, as they may be able to cut their monthly mortgage payments further."