15
Jan
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.