You are here: Home - Uncategorized -

First-time buyers feel the strain

0
Written by:
13/12/2006

First-time property buyers are feeling the strain when it comes to getting their own home, according to the Council of Mortgage Lenders (CML).

Despite many particpating actively in saving and investment to put down a decent deposit on property, in October first-time buyers had to borrow at a record 3.27 times their income to take out a mortgage, with even people moving house having to borrow at 2.98 times income.

Some lenders have said that they are prepared to lend up to five times salary to enable borrowers to keep pace with rapidly rising house prices, although they insist that strict affordability checks are in place to avoid people getting into too much debt.

Saving and investment are strongly advised to give people a head start in the property race and even taking out the best ISA products for a number of years would allow a greater accumulation of funds to put towards a deposit.

“It is a reflection of a growing affordability problem for first-time buyers,” said Bernard Clarke of the CML. “But it is offset by lower borrowing costs.”

Despite the best efforts of lenders to include as many people as possible in the mortgage-borrowing stakes, rapidly rising property prices have excluded many would-be buyers from the market, with others dangerously over-stretching themselves to put down a large deposit.

 

 

 

 

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Investment bankers coin big bonuses

American bank Goldman Sachs, which has a major presence in the UK investment arena in the City of London, is paying...

Close