Mortgage affordability stabilises in run up to Christmas

The year-on-year figure has shown a 0.3% increase from October 2004 and average monthly payments increased from £511 to £512 between September and October of this year. London was the only region to show an increase in the cost - from 23.4% in September to 23.5% last month. Wales and the East Midlands both showed a 0.2% drop in affordability, taking them to 16.2% and 16.3% respectively.

Andy Gray, head of mortgages at the Woolwich, said: "As predicted last month, affordability is stabilising, which is a positive trend in the run up to Christmas when people tend to spend more of their disposable income preparing for the festivities."