Average First-Time Buyer Mortgage Values Triple
The average value of mortgages taken out by first-time buyers has nearly tripled during the past 10 years.Research from online mortgage group mform reports that the value of first time buyer mortgages has gone up by 173.6% since 1996, or around 10.7% a year.
In monetary terms, in 1996 people borrowed an average of just £39,811 to get on to the property ladder. This figure soared to around £120,500 by 2006 according to mform.
Mform warned that if borrowing continued to increase at this rate, the average first-time buyer mortgage would be more than £200,000 by 2012.
Francis Ghiloni, marketing and business development director at mform said: "For a first-time buyer to take out a mortgage that is three times their salary today, we estimate that they would need to be earning £40,190, but by 2012, it would need to be a staggering £66,806."
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