2008 should be better for first-time buyers

12-Feb-2008

The coming year should see an improvement for first-time buyers in terms of affordability, according to the Council of Mortgage Lenders (CML).

While mortgage affordability for first-time buyers was problematic in 2007, the recent base rate cuts along with the further cuts predicted should put borrowers in an improved position, says the group.

In December, first-time buyers were seen to contribute around 20.7 per cent of their income towards mortgage interest, as opposed to 17.9 per cent at the same time in 2006.

Commenting on the likelihood of better condition for buyers, CML director general Michael Coogan said: "For first-time buyers, the combination of subdued house price inflation and lower mortgage rates means affordability should ease slowly as the year progresses."

Only 40 per cent of first-time buyer applications were for properties less than the £125,000 stamp duty threshold, compared to around 50 per cent in 2006.

The CML is the trade association for the mortgage lending industry.

http://www.firstrungnow.com/news/home-really-is-where-3683.aspxRate cut could be good for new homeowners

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