Lenders offering some of their cheapest mortgage deals last year helped make homeowners' monthly mortgage payments in 2011 the most affordable in Birmingham since records began in 2005 according to new research released today from Barclays.  

In an analysis of more than one million customers' accounts nationally, it found that on average, people in Birmingham paid out 17.6 per cent of their take home pay last year to cover their monthly mortgage payments, or £416 a month, compared to 2008 when it reached its highest point of 23.7 per cent. Across West Midlands homeowners paid out 14.6 per cent £421 compared to the UK which was 15.4 per cent (£494).

These figures support opinion research commissioned by Barclays that found the majority of homeowners across the West Midlands are more comfortable with their current payment levels. The poll of West Midlands homeowners found that 78 per cent have room for manoeuvre should their circumstances or interest rates change and 54 per cent find their mortgage affordable.  

In terms of West Midlands homeowners views on interest rates - just 43 per cent think interest rates will rise in 2012. Around a third 31 per cent of them believe rates will start to rise in 2013.  

Andy Gray, head of mortgages at Barclays, said: "With the cheapest ever mortgage deals offered to homeowners last year together with the fiercely competitive mortgage market it stands to reason that the average monthly mortgage payment was at its most affordable level in Birmingham since 2005. However Barclays is urging homeowners not to be complacent with this affordability and to review their mortgage early on in 2012 to see how they can cut their monthly mortgage payments further." When asked about budgeting for 2012, the top three concerns in West Midlands for homeowners were energy bills (66 per cent), cost of running a car (39 per cent) and cost of food (33 per cent). 

Homeowners who are reviewing their mortgage arrangements can take advantage of the Barclays Woolwich 'Great Escape' package, which allows borrowers with a mortgage of up to 80 per cent per cent loan-to-value to switch their mortgage to Barclays with no application fee, free legal work and valuation and £300 cashback to cover the cost of a borrower's exit fee  for leaving their present lender.