In the past 4 years, first-time buyers have seen a giant increase in the size of their mortgage - it has almost doubled since 2003.
From the article:
‘New figures from Abbey show to get on the property ladder new homeowners are now forced to borrow on average £130,000. This compares to the average amount of £75,000 borrowed by first-time buyers four years ago in 2003.’
It seems to be getting more and more difficult to get onto the property ladder, with many young house buyers having to rely on their parents for financial assistance.
With house prices ever increasing, so too is the amount first-time buyers have to borrow for a mortgage. However people need to be be wary of borrowing too much over their salary as the Bank of England’s base rate, which is currently at 5.25%, may also be set to rise, leading to an increase in mortgage repayments which could mean people struggling to keep up with monthly payments.
Read the article at MyFinances.co.uk
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