Affordability improving for FTBs

16-Jan-2009

Mortgage affordability for Britain's first-time buyers (FTBs) is improving, according to the Council of Mortgage Lenders (CML).

Interest rate reductions from the Bank of England mean mortgage interest payments are accounting for a lower portion of borrowers' incomes, the organisation said.

CML figures showed that interest payments in November consumed the lowest slice (18.2 per cent) of a FTB's income since February 2007.

But the data also revealed that the typical Briton tabled a deposit of 18 per cent in November - a record high.

Michael Coogan, director general of the CML, said: "Affordability is improving for those who are able to access a mortgage, but saving for a deposit will still be a constraint for many would-be first-time buyers."

Those who can afford mortgage finance and a good deposit at present will be able to take advantage of low house prices.

Statistics revealed in Nationwide's house price index this month showed that the average home lost 15.9 per cent of its value last year.

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