Scottish ‘Mortgage Freedom Day’ ten days early thanks to falling cost of mortgage repayments

This is 10 days earlier than last year (22 March), with the shift reflecting the falling cost of mortgage repayments from 2015 (22 per cent).

Based on the average Scottish annual mortgage repayment cost of £4,897 and the average net annual income of £25,201, Bank of Scotland has calculated that those with a mortgage will have today earned enough on average to cover their mortgage payments for the rest of 2016.

For many Scots, Mortgage Freedom Day occurred earlier than this, with home owners in West Dunbartonshire celebrating as early as 21 February. In total, residents in six local authorities saw their potential Mortgage Freedom Day in February.

At the other end of the scale, those in East Lothian have the longest wait - 29 March which is a day later than the nearby capital. In the North East, homeowners in the Granite City could achieve mortgage freedom four days sooner than those in the surrounding Aberdeenshire area.

Nicola Noble, mortgage director at Bank of Scotland said: “Of course, very few of us could pay our entire salary towards our mortgage, but Mortgage Freedom Day gives us an interesting way of thinking about our mortgage repayments. Mortgage Freedom Day coming 10 days earlier than 2015 is good news for Scots and reflects rising average earnings and higher employment, as well as the reduction in rates that many consumers are paying on their mortgage.”