Abbey raises income multiples in response to rising house prices

02-Nov-2006

Abbey has announced its decision to raise its income multiples for mortgage applications, in reaction to the rising difficulties faced by first time buyers as property prices increase.

First time buyers and repeat purchasers will now be able to obtain a mortgage of up to five times a single or joint annual salary, providing the total borrower income is at least £60,000.

Potential borrowers will also need to have a good credit score.

"It is no real surprise Abbey has increased its income multiples. The move would appear to be a direct response to the seemingly relentless rise in house prices," said Louise Cuming, from moneysupermarket.com.

"While this approach will help maintain momentum, it won't necessarily benefit the many first time buyers who are struggling to find a deposit," she added.

A number of other mortgage lenders also consider large income multiples when considering loans, including Northern Rock and Royal Bank of Scotland.

Moneysupermarket.com is a price comparison site, examining a range of financial products, including personal loans, mortgages and credit cards.

For advice on first time buyer mortgages or to find out how much you can borrow and how much it would cost you, contact a good mortgage broker.

As the market for first time buyers toughens, new companies are offering new services to help first time buyers buy new properties by working with the house-builders.

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