Mortgage payments have fallen to their second lowest level on record, according to new figures.

Borrowers who bought a new home in November spent an average of less than 11 per cent of their income on paying the interest element of their mortgage, according to the Council of Mortgage Lenders.

The figure was the lowest level for 13 years and the second lowest since records began in 1974.

It is the latest sign of financial pressures easing on home owners across Britain despite the worse recession since the Second World War.

Several lenders have recently reported that house prices are rising while mortgage rates are beginning to drop as competition returns to the market.

The CML said home movers spent just 10.6 per cent of their income on paying their mortgage interest in November, the lowest figure since a brief spell in 1996 when it dropped to 10.2 per cent.

During the first few months of the credit crunch the figure stood at 17.9 per cent in December 2007, while in the previous recession it reached 28.1 per cent in the third quarter of 1990.

The CML attributed the current low level to a combination of lower mortgage rates and a change in the type of deals people took out during the month.

Only 58 per cent of borrowers opted for a fixed rate mortgage during November, down from 66 per cent in October, while 42 per cent took out a variable rate deal.

Source: Telegraph.co.uk