Are mortgage payments really absorbing a record share of income?

Clients may have seen an article in the Telegraph on Wednesday 16th April which reported that, according to research company Mintel, mortgage payments now take up a record 25% of the average household’s post-tax income. The report also noted that this figure was three times higher than in 1991, a message which is very different from that given by standard affordability measures. Given this difference, we decided to take a closer look at Mintel’s estimates.