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Cost of servicing mortgages stabilises says Woolwich

The monthly cosst of servicing mortgages has begun to stabilise in the run up to Christmas according to the Woolwich.

The cost has remained at 18.6 per cent of borrowers’ household disposable income in October according to the mortgage affordability research.

Annually, the increase is up by 0.3 of a percentage point from 511 to 512 from September to October 2005.

London however shown an increase up from 23.4 per cent to 23.5 per cent this month from the month before.

Woolwich head of mortgages Andy Gray says: “As predicted last month, affordability is stabilising which is a positive trend in the run up to Christmas when people tend to spend more of their disposable income preparing for the festivities.”

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