The findings come amid subdued house price growth and ongoing discussions about property tax reform

 The financial strain of monthly mortgage repayments has reached its highest point since the 2008 financial crisis, according to analysis from INTEREST by Moneyfacts.

The findings come amid subdued house price growth and ongoing discussions about property tax reform.

Recent data show that those on average incomes who have managed to secure a mortgage in recent years are now allocating nearly half of their gross salary to monthly repayments.

This marks the most significant affordability challenge for borrowers since the global financial downturn of 2008.

At the start of the 2000s, the typical house price stood at £78,000—about five times the average annual wage of £15,800. By 2025, this ratio has widened, with the average home costing £269,000, or roughly seven times the average salary of £37,600. This figure exceeds standard lending multiples used by many lenders.

Since 2000, average earnings have increased by 237%, while house prices have surged by 345%. If wage growth had matched the pace of house price inflation, the average UK salary would now be over £54,000.

Borrowers able to secure one of the most competitive two-year fixed rates at 90% loan-to-value—currently around 4.20%—could reduce their monthly payments by approximately £100 compared to the average rate of 5.12% recorded in June. Nevertheless, these payments would still represent about 38% of gross monthly income, a proportion similar to that seen in June 2018.

Affordability may have eased a touch over the past 12 months, but buying a home in 2025 is still too much of a financial stretch for many, said Adam French, head of news at Moneyfacts. Putting aside the not inconsiderable tasks of affording rapidly rising rent costs and saving a sizeable deposit, monthly mortgage repayments are eating up almost half of gross earnings – the toughest burden since the 2008 financial crisis.