Homeowners 'Mortgage Free' From Today

New homeowners and first time buyers have earned enough money by today to pay off the rest of their mortgage payments for this year, according to one bank.

Halifax are calling today 'Mortgage Free Day' - they say that on average, all the money a buyer has earned up until now will cover their house payments for 2015. It is designed to show exactly what proportion of income is needed to pay for a home.

For example, based on the average annual mortgage repayment cost of £7,567 and the average net annual income of £25,588, Halifax has calculated that those with a mortgage will have today earned enough on average to cover their mortgage payments for the rest of 2015.

Mortgage Freedom Day this year occurs eight days later than in 2014 (10 April), and is the result of net annual income decreasing by £15 since last year while the average annual mortgage repayment increasing by £613 over the same period.

Craig McKinlay, Mortgage Director for Halifax,said:

"While monthly mortgage and rental costs account for the majority of many people’s household budgets, Mortgage Freedom Day provides a different perspective on how much we spend on these costs over the course of a year.

“Our research shows that today, if people had put everything they’d earned since the start of the year towards their mortgage, the average homeowner would be mortgage free for the remainder of the year.”