Average homeowner is now borrowing £243,355 after placing a 20% deposit of £60,839 after interest rate hike

The latest research by specialist property lending experts, Octane Capital, has revealed how the current cost of a monthly mortgage repayment differs across each region of England and just where homebuyers can expect to face the highest cost of borrowing.

The research shows that following a 13th consecutive base rate increase to 5%, the average homeowner across England is now borrowing £243,355 after placing a 20% deposit of £60,839.

On a 25 year term at the average mortgage rate of 3.76%, this means they are making a full monthly repayment of £1,252, or £763 if repaying interest only.

But it is borrowers in London that face the highest cost, with the average homebuyer facing a monthly mortgage repayment of £2,155 – 72% higher than the national average.

Those in the South East are required to borrow the second highest sum, resulting in a full monthly repayment of £1,624 – 30% more than the national average.

The East of England and the South West also come in above the national benchmark, with the average homebuyer borrowing 16% and 7% more respectively, with the monthly cost of a mortgage in each region coming in at £1,449 per month and £1,342.

However, five out of nine regions of England are currently home to more affordable mortgage costs when compared to the national average.

The most affordable of the lot is the North East where, at £648 per month, the average monthly mortgage repayment is -48% more affordable than the wider national benchmark.

Across Yorkshire and the Humber the average monthly mortgage repayment of £838 per month is -33% less than the national average, with the North West (-30%), West Midlands (-19%) and East Midlands (-19%) also home to a far lower monthly mortgage repayment.

CEO of Octane Capital, Jonathan Samuels said, “The property market is vast and varied and property values differ quite dramatically from one region to the next. So it stands to reason that those who need to borrow the most, in areas such as London, are facing the most expensive monthly mortgage repayments as interest rates have continued to rise.

Of course, while some regions are home to far more inflated house prices, affordability is relative to earning potential. So, while house prices and the resulting mortgage costs may be lower in areas such as the North East, that’s not to say households aren’t feeling the financial strain piled onto them by the Bank of England at present.”