Today is UK Mortgage Freedom Day

April 19 is UK Mortgage Freedom Day, the date when the average new borrower will have earned enough to pay off the annual cost of their mortgage.

This is more than two weeks before Rental Freedom Day, when the average worker has earned enough to pay off their full year’s rent.

This applies to both first-time buyers and home movers taking out a mortgage in the final quarter of 2015.

Mortgage Freedom Day this year occurs just one day later than in 2015, with average annual mortgage repayment edging up by £17 during the year.

It is based on the average annual mortgage repayment cost of £7,584 and the average net annual income of £26,023.

Rental Freedom Day comes 16 days later on the 5 May – again a day later than in 2015.

Mortgage Freedom Day varies widely across the country.

Homeowners in Scotland and Northern Ireland were first to be liberated on 12 March, followed by Yorkshire and the Humber (25 March), the North West (26 March) and the North (27 March).

Mortgage Freedom Day doesn't arrive for Londoners until 26 June, three months later than in northern England.

Craig McKinlay, mortgage director, Halifax, said: “For most homeowners, mortgage payments are the biggest outgoing every month.

“Knowing they’ve earned enough to pay off their mortgage for another year should be a reassuring thought.

“On the other hand, those who rent will need to work a further couple of weeks to have earned enough to cover their annual rental cost."