Mortgage payments as a proportion of income have fallen by more than two fifths in Scotland in recent years, from a peak of 38% in the fourth quarter of 2007 to 22% in the same period of 2012, according to new Bank of Scotland research.

Lower house prices and reduced mortgage rates have been the main drivers behind the significant improvement in affordability. The average monthly take home wage in Scotland is £1,954 while the average monthly mortgage payment is £424.

Mortgage payments for a new borrower have remained at their lowest level in relation to earnings for almost a decade, the research also shows. Typical mortgage payments for a new borrower, both first time buyers and home movers, at the long term average loan to value ratio have been broadly stable at 21 to 22% of disposable earnings over the past two years. This is the lowest level since 2002 to 2003 and is comfortably below the average of 30% recorded since 1983.

Mortgage payments account for the lowest proportion of disposable earnings in Northern Ireland at 20% followed by Scotland at 22%. This compares with the UK average of 28%.