Mortgage burden at record levels
The burden of taking out a mortgage has reached record levels, according to the Council of Mortgage Lenders (CML).In May, first-time buyers had to borrow 3.37 times their incomes to afford a mortgage, while other movers had to borrow 3.03 times their income.
Due to rising interest rates, interest payments for first-timers took up 19.1% of their incomes, the highest proportion since 1992.
Other home movers saw interest payments taking 16.6% of their incomes.
This latest data does not take into account the latest rates rises so pressures of affordability are expected to rise still further.
Interest rates are expected to rise further, above the current 5.75% base rate set by the Bank of England, and therefore fixed-rate mortgages are still proving very popular.
The CML said that 89% of first-time buyers and 73% of home movers took out a fixed-rate deal in May.
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