Bank of Scotland has calculated that by 14th March, new borrowers had earned enough to cover the annual cost of their mortgage repayments.

Based on the average Scottish annual mortgage repayment cost of £5,134 and the average net annual income of £25,9253, this potential ‘Mortgage Freedom Day’ is only two days later than last year, thanks to average mortgage rates continuing to fall.

Scotland is the first UK region to reach its Mortgage Freedom Day, with Northern Ireland following on the day after.

Looking at the results by Local Authority District (LAD), home owners in West Dunbartonshire and North Lanarkshire were the first to reach their potential Mortgage Freedom Day in Scotland this year – 26th February - due to lower mortgage repayments to net earnings. 

Those LADs where house prices, and therefore mortgage payments, are highest have to wait the longest to reach their potential Mortgage Freedom Day. Wednesday 29 March will be the last Mortgage Freedom Day in Scotland, this time for the City of Edinburgh. Last year East Lothian was the last LAD to reach their Mortgage Freedom Day, and on the very same date, however they now achieve this on 28th March.

“In 2016, the falling cost of mortgage repayments meant Scotland’s Mortgage Freedom Day was ten days earlier than in 2015, which was good news for new borrowers,” commented Graham Blair, Mortgage Director at Bank of Scotland. “This year it is virtually unchanged from 2016, occurring just two days later. Although average house price grew by just under 9% during the year, mortgage rates have fallen to record lows whilst rising net earnings has helped mortgage affordability.”

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