Not only is the cost of paying a mortgage on a new home at its lowest in 14 years but the cost is well below the average over the past 27 years.
At the end of 2011, new borrowers - first-time buyers and home movers - needed just 27 per cent of their net income to pay a mortgage.
The last time it was lower than this was during 1997. And this is well below the average of 37 per cent recorded over the past 27 years.
All 12 regions of the UK have seen property become more affordable for prospective buyers in the past four years due to falls in house price and cuts in mortgage rates.
These calculations come from Halifax using its own figures, as well as data from the Bank of England and the Office of National Statistics.
They are based on 70 per cent mortgages - which means you borrow 70 per cent of the property value and put up 30 per cent up front as a deposit.
Improvement in home affordability
Martin Ellis, housing economist at Halifax, says: "Mortgage payments for a typical new borrower are now at their lowest in proportion to earnings since 1997.
"The marked improvement in affordability was a key factor supporting housing demand in 2011.
"The prospect of an exceptionally low Bank of England Bank Rate over the foreseeable future should maintain affordability at favourable levels in 2012.
"This should support the market over the coming 12 months, helping to offset the impact of the downward pressures on demand from the ongoing difficulties faced by households regarding their finances and uncertainty about economic prospects."
It's getting better all round
In 2011, for the first time in many years, Brits paid off slightly more personal debt than they took out, according to debt charity Credit Action.
And this is combined with a rapidly improving market.
At the height of the property market in summer 2007, mortgage payments took up 48 per cent of net income but today this has fallen to 27 per cent.
The average mortgage payment between 1983 and 2011 was over a third of net income at 37 per cent.
Regional variations
In Northern Ireland, four years ago you needed to spend 63 per cent of your after-tax income to service the mortgage on your new home but now this has now fallen to 21 per cent.
Buyers in Yorkshire and Scotland have also seen the amount of net income they need to pay a mortgage go down by half since mid-2007, to 20 and 21 per cent respectively.
London has always been a prime location, with the average monthly mortgage payment in 2007 eating up 56 per cent of net income.
But this has now fallen to 35 per cent.
Mortgages for first-time buyers
Currently, there are two and three-year deals with low fees for as little as 2.5 per cent to 5 per cent depending on your circumstances and deposit.
These are very cheap but short-term deals – fixed or variable – are only suitable if you can afford far higher rates at the end or if you use the opportunity that these low mortgage rates bring to save money or overpay your mortgage.
If not, then five, seven, or 10-year deals are remarkably cheap, costing around 4 per cent to 6.5 per cent for many borrowers, which is half the historical average based on Bank of England and lender data.
Prospective house buyers have never been able to lock in rates this cheap over such long periods.
If you are considering a long-term fix, make sure you're either willing and able to stay in the house for the full 10 years or that the terms are flexible in case you need to move and take your mortgage with you.
Otherwise, you might find it hard to move your mortgage if you expect your circumstances to worsen during the period.
