The latest figures show that the average mortgage servicing cost has gone up a bit in August in spite of the rate cut. It is estimated that an amount of £512 is spent on an average by people in England and Wales, up by £10 from July. Mortgage repayment cost is 18.7% of the disposable income, a constant rise from 18.4% in July and 18% last year.

It has also been pointed out that rate cuts in August would have a negligible impact, as the variable rates were cut mostly from September.
 
Another interesting piece of data suggests that most people tend to take a home loan in the months of July and August, and this would have spoiled the figures. This would mean that the house owners would opt for a rate that is less competitive. There is also a possibility that they opt for new loans which have lower rates as compared with the previous. Moreover, there has been a marked growth in affordability ratio in July and August.
 
 The study was done by Woolwich who look after the accounts of nearly 1.3 million customers of Barclays Group. They have issued a strong message for the mortgage borrowers that the current steady trends may change soon, and there may be a slight blip in the mortgage industry.  
 
The income level needed for mortgage servicing remained constant at 16.3% in Wales and it increased steadily right across England with London seeing the biggest jump of 0.7% up to 23.4%.