Map reveals 20 areas with the most mortgage-free homes – do you live near one?
BEING mortgage-free is a dream for many homeowners – but where are the most popular areas?
Whether the property was brought outright with cash or the homeowner has paid off their mortgage, new data reveals the top locations in the UK.
Around 32.8% of UK homeowners own their property outright, according to the latest figures from the 2021 census.
Now new figures from estate agent Hamptons reveal the 20 areas where they are most likely to live – and unsurprisingly London is not on the list.
If you live in North Norfolk, Dorset or Rother then you could be one of the lucky few.
Here we explain the areas of the UK where most homeowners are mortgage-free – and why.
Mortgage-free in Scilly
The Isles of Scilly have the most mortgage-free homeowners of any region in the UK.
On the picturesque islands, a whopping 77% of homes that are owned do not have a mortgage.
That means just 23% of people who own their own home have a home loan.
The Isles are just off the Cornish coast and are known for their sandy beaches, abandoned castles and rugged coastline.
They attract thousands of tourists every year who want to soak up the sunshine or take part in sailing or outdoor activities.
Many other island residents do not have a mortgage.
Just down the coast on the Isle of Wight, 66% of property owners do not have a home loan.
That means just 33% of people who own a property have a mortgage.
The once-quiet island is now a tourist hotspot, with thousands flocking to visit it every year.
The areas with the most mortgage-free homes
In 20 areas more than 60% of homeowners have no mortgage. They are:
- Isles of Scilly: owned outright 77%. Owned with a mortgage 23%
- North Norfolk: owned outright 71%. Owned with a mortgage 29%
- Ceredigion: owned outright 70%. Owned with a mortgage 30%
- Powys: owned outright 69%. Owned with a mortgage 31%
- East Lindsey: owned outright 69%. Owned with a mortgage 31%
- Rother: owned outright 67%. Owned with a mortgage 33%
- Gwynedd: owned outright 66%. Owned with a mortgage 34%
- Derbyshire Dales: owned outright 66%. Owned with a mortgage 34%
- Pembrokeshire: owned outright 66%. Owned with a mortgage 34%
- West Devon: owned outright 66%. Owned with a mortgage 34%
- Isle of Wight: owned outright 66%. Owned with a mortgage 34%
- Torridge: owned outright 65%. Owned with a mortgage 35%
- Isle of Anglesey: owned outright 65%. Owned with a mortgage 35%
- Tendring: owned outright 65%. Owned with a mortgage 35%
- Dorset: owned outright 65%. Owned with a mortgage 35%
- East Devon: owned outright 65%. Owned with a mortgage 35%
- East Suffolk: owned outright 64%. Owned with a mortgage 36%
- Chichester: owned outright 64%. Owned with a mortgage 36%
- South Hams: owned outright 64%. Owned with a mortgage 36%
- Herefordshire, County of: owned outright 64%. Owned with a mortgage 36%
Queen Victoria is to blame as the former monarch frequently visited the island, staying at her holiday home Osbourne House.
Meanwhile, the Isle of Anglesey also has an above-average number of mortgage-free homes.
Around 65% of properties which are owned do not have a home loan.
That means just 35% of people still have a mortgage on their property.
Richard Donnell, executive director of research at Houseful, said the remote location of these UK islands will mean that many of the homeowners are mortgage-free.
“These islands are just tiny, specialist markets,” he said.
“I’d imagine they’ll have a high promotion of older homeowners.
“You tend to find where there’s more retired and older households, you tend to find more homes owned without a mortgage.”
No home loans in Norfolk
In second place was North Norfolk, where 71% of homeowners own their own home outright.
That means just 29% of homeowners have a home loan.
Situated on the east coast of England, the area has 45 miles of breathtaking coastline.
Just over two hours away in East Lindsey, 69% of homeowners are mortgage-free.
As a result, only 31% of homeowners in the region have a mortgage.
The area borders the North Sea and includes the Lincolnshire Wolds, a designated area of Outstanding Natural Beauty.
Meanwhile, a couple of hours inland in the Derbyshire Dales, around 66% of homeowners do not have a home loan.
In comparison, only 34% of people have a mortgage on their property.
The region is home to the town of Bakewell, where the famous tart was born.
David Fell, a lead analyst at Hamptons, said these areas contain a lot of second homes, which are likely to have an impact on the figures.
He said: “There are some second homes in these areas which will have an impact.
“Not all second homeowners have mortgages, so I think that’s a big trend.”
Windfall in Wales
In the west of Wales, Ceredigion is home to the third-highest number of mortgage-free homeowners of any UK area.
Approximately 70% of people who own their own property in the rural region do not have a mortgage.
That means only 30% of property owners still have a home loan.
Just an hour away in Powys there are also a record number of mortgage-free residents.
Around 69% of homeowners in the largest county in Wales are mortgage-free, the figures reveal.
The hilly region is home to lots of mountains, including the famous Brecon Beacons national park.
Only 31% of people who live there have a home loan.
Meanwhile, in Gwynedd, which encompasses the Snowdonia national park, just 34% of homeowners have a mortgage.
That means an impressive 66% of residents do not have a home loan.
It’s a similar story in Pembrokeshire, which contains 186 miles of coastal national park.
Just 34% of residents who live in this beautiful region have a mortgage.
High home ownership in seaside towns
Dorset in the South West of England is also home to thousands of fortunate homeowners.
Just 35% of homeowners in the area have a mortgage, while 65% of people own their home outright.
In nearby East Devon the same number of homeowners are mortgage free.
The county is home to the popular seaside towns of Ilfracombe, Exmouth and Lyme Regis.
Meanwhile, an hour away in West Devon 66% of homeowners own their own home outright.
This means just 34% of homeowners still have a home loan.
The area is known for being part of the Dartmoor National Park.
But they are not the only areas in the south west where most homeowners are mortgage-free.
Torridge in North West Devon and South Hams on the south coast of Devon both have high numbers of mortgage-free residents.
Around 65% of homeowners in Torridge do not have a mortgage.
This means only 35% still have a home loan.
South Hams is not far behind as only 36% of homeowners are still paying off a mortgage.
In comparison, approximately 64% of homeowners have paid off their home loan in the area.
David Fell explains that areas where lots of homeowners are mortgage-free typically have an ageing population.
He said: “They tend to have older than average populations who initially bought when house prices were much cheaper in real terms than they are today.
“I think the large increases in outright ownership reflect Baby Boomers being the first big generation of homeowners who are at the point where most have cleared their mortgage.”
Around 73% of households which are headed by someone aged over 65 own their home outright.
This figure has risen significantly from ten to 20 years ago but is probably just about past its peak.
He adds: “As those who missed the tail end of the home ownership boom get older, we expect more older households to either rent their home, or at least still be paying a mortgage.”
How to pay off your mortgage faster
There are several ways to pay off your mortgage quicker, which could save you money in interest payments. Here we explain how they work:
- Overpay your mortgage – If your salary goes up then you may want to put more money towards your home loan each month. Every bank and building society will let you overpay your mortgage by different amounts. Some charge you a penalty if you go over a certain threshold. Ask your lender how much you can increase your monthly payments.
- Lump sum – You can also make an overpayment as a one-off lump sum. Check your overpayment terms, as there may be a limit on how much you can overpay each year.
- Shorten your mortgage term – Typically, the shorter your mortgage term, the less interest you pay overall. This can mean higher monthly repayments, but you’ll pay less in total.
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