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By Kevin PeacheyCost of living correspondent

Housing is more affordable than a year ago, according to The UK's biggest mortgage lender, but high mortgage rates mean it is still a stretch.

The Halifax, part of Lloyds Banking Group, Said that a typical home in The UK cost 6. 7 times average annual earnings of a full-time worker.

This is down from 7. 3 times a year ago, which was a record level.

The lender Said that house prices had Fallen in The Last Year , while earnings had risen.

However, a typical home is still less affordable than it was near The start of The pandemic, and mortgages are taking up a bigger chunk of incomes.

The Halifax Said that mortgage costs typically accounted for 35% of a homeowner's income, up from 30% in a year and not far short of The Level seen at The start of The financial crisis in 2007.

" The sharp rise seen in Interest rates over The Last Year has meant The sums now look very different for both homebuyers and those looking to remortgage, " Said Kim Kinnaird, mortgages director at The Halifax.

" Typical monthly mortgage payments are up by around a fifth, which is a big jump at any time, but particularly during a wider cost of living squeeze. "

The average rate on a two-year fixed mortgage deal is 6. 75%, according to The financial information service Moneyfacts. The typical rate for a longer five-year deal is 6. 23%.

Mortgage costs are much higher now than The ultra-low rates of less than 2% many homeowners enjoyed on their previous deal.

The cost of home loans was low for More Than a decade, but climbed since The Bank of England began raising Interest rates in late 2021.

The Central Bank has increased its benchmark rate to reach its Current level of 5. 25% in order to tackle The above-target rate of inflation.

What happens if I Miss A mortgage payment?

The Halifax Said that housing had become more affordable in The Last Year because property prices had dropped, standing at £286,276 for a typical home. A year ago it was £293,586.

At The same time average earnings had grown by about 7%.

As a result, The cost of a home in terms of a multiple of earnings had Fallen - Making It more affordable. But for Most People , monthly mortgage repayments are The biggest strain on their finances, especially if rates are higher than they had initially budgeted for.

That is The reality for many first-time buyers, despite affordability having improved. Under The Halifax's calculations, The typical First Time buyer faces house prices 5. 4 times their average earnings. It was 5. 8 times a year ago.

For all buyers, London has The least affordable homes, priced at 9. 3 times average earnings, with mortgage repayments taking up 49% of earnings.

The North East of England, at 4. 9 times average earnings and Scotland, at five times, have The Most affordable homes, with Inverclyde - where homes cost 2. 9 times average earnings - recorded as having The Most affordable homes of any local authority area, The Halifax Said .

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How much could my mortgage go up by? How much are you borrowing? If you have an existing mortgage enter The outstanding balance left to pay. If not, enter The Total you are looking to borrow. £ How long will you take to pay it back? If you have an existing mortgage enter The Total number of years remaining. If not, enter The Total number of years you are looking to borrow over. years What is your Current . . For those with a mortgage enter The rate for your Current fixed term. For those without a mortgage enter an Interest rate from another source, such as a bank's mortgage rate calculator. Interest rate monthly payment % Choose an Interest rate to compare with… %

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This calculator does not constitute financial advice. It is based on a standard mortgage repayment formula based on The mortgage size and length and a fixed Interest rate. It should be used as a guide only and does not represent The suitability, eligibility or availability of mortgage offers for users. For exact figures, users will need to approach an official mortgage lender.

Interest rates fluctuate based on The Bank of England's base rate and market Conditions .

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Source of news: bbc.com