Mortgage affordability has deteriorated for two consecutive months in January, with the latest indexes from the Mortgage and Protection Network Stonebridge discovered.
The borrowers spent more of their salary on monthly repayments in both December and January than in the previous month, the company's analysis revealed. 
In December, mortgage repayments accounted for 36.5% of the average borrower's salary, starting from 36.3% in November.
In January, this figure rose to another 37%.
The decline in affordable prices is driven by a combination of increased loan size, slower wage growth and higher mortgage rates.
According to the National Bureau of Statistics, the average loan size increased by 1.4% in January to 192,114 pounds, while the average annual sal increased by 0.5% between December and January.
Bank of England figures show that the average rate for new mortgages rose for the first time in five months, raising four basis points to 4.51%.
However, affordability remains significantly better than December 2023, when mortgage repayments accounted for 42.4% of the average salary.
The long-term average is 35.9%.
“We're looking forward to seeing you in the future,” said Rob Clifford, CEO of Stonebridge. “Mortgage affordability continues to be tougher for the second consecutive month as rising home prices have increased the size of loans and mortgage rates have risen.
“But in the context, affordability remains significantly better than it was at the beginning of last year, and don’t forget that affordability will definitely improve as prices drop in the coming months.
“The Bank of England's Monetary Policy Committee chose to hold the fees in May, but this will increase the demand for further reductions in borrowing costs.
“Inflation remains a concern, but much of the recent increase is driven by rising energy costs and strong dollars rather than surge in domestic demand.
“As a result, the risk of inflation being out of control once again appears to be limited.
“At the same time, the UK economy is struggling with momentum.
“If growth continues to stall, MPCs may have no choice but to step in to provide support.
“It could lead to reduced borrowing costs in the coming months and provides much-needed relief to mortgage borrowers. Mortgage borrowers are still working on the effects of the living crisis.”
