15 Jan

First-time buyers less stretched by mortgages, says CML

First-time buyers less stretched by mortgages, says CML

The proportion of a first-time buyer's monthly wage contributing to mortgage repayments has fallen, a new report has revealed.

Conducted by the Council of Mortgage Lenders (CML), the study showed that 18.2 per cent of a first-time buyers income is spent on paying off their mortgage - the lowest level this has been since February 2007.

Furthermore, house movers also have more disposable cash as they now spend 14.4 per cent of their wage on their mortgage - a proportion last recorded in April 2006.

However, on average first-time buyers must find a deposit of 18 per cent in order to purchase a home, the CML found, the highest percentage for 35 years.

A number of lenders have revised their mortgage deals recently, following four consecutive rate cuts from the Bank of England.

Abbey was the latest bank to unveil a number of new options, including fixed mortgages with rates up to 0.3 per cent lower.ADNFCR-1222-ID-18975299-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.