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Consumer Home
18 September 2006
First-time home buyers are taking bigger commitments in proportion to their incomes than ever before, according to figures released by the Council of (CML).
The CML figures show that the average loan to a first-time buyer in July was 110,000 or 90 per cent of the value of the property, 3.24 times the average annual income.
CML director general Micahel Coogan said the figures were proof that young people were still managuing to get a "toehold" on the property ladder, but "higher income multiples, coupled with higher interest payments as a proportion of income suggests that they are continuing to stretch themselves to do so."
The news comes the day after Citizens Advice reported that 770,000 people had missed mortgage repayments in the past year.
If a rise in house prices affects you and your current credit commitments, check your credit report and ensure you're up to date.
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