First-time buyers under pressure

First-time buyers are now borrowing a record average of 3.27 times their annual incomes to get a mortgage, the Council of Mortgage Lenders (CML) says.

The figure shows how rising house prices have squeezed the finances of new buyers.

In August last year the average first-time buyer borrowed just 3.08 times their income for a mortgage.

The average amount borrowed now stands at £112,000 on an income of £34,469, with a typical 10% deposit.

CML director general Michael Coogan said: “Overall affordability has worsened a little, especially for first-time buyers.”

BBC NEWS | Business | First-time buyers under pressure

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