More than half of borrowers with an average mortgage of more than £200,000 in London are in debt, according to new research.
More than 60% of people in the capital have a mortgage with an annual repayment of more £100,000, the Office for National Statistics (ONS) has revealed.
The ONS also revealed that London’s average monthly repayments have grown from £5,900 in 2014 to £6,500 in 2020.
A number of factors are likely to be at play.
A large part of the rise is because of the housing market downturn, which is now back on track.
The number of loans with a payment of more, on average, than £100 has also fallen from more than 70,000 to around 55,000.
The rise in home ownership has been driven by a surge in young people, who are renting and buying their first homes.
The trend is expected to continue in the coming years.
Another factor is that more people are using a mortgage to pay for a property.
The average amount borrowed to buy a property in London has increased from £8,000 two years ago to £9,300 in 2020, according the ONS.
The data shows that the majority of households in the city of London are homeowners with mortgages of less than £80,000 with an overall average of £160,000 owing.
Over half of London’s households have an average income of less £50,000 while less than a quarter have household incomes over £100.
The highest proportion of people with an income over £90,000 is found in London’s north-east, with nearly half of households there.
The proportion of households earning more than that is even higher in the east of the city.