Average first time buyer mortgage still on the increase

03-Aug-2007

First time buyers are now paying almost twice as much for a mortgage as they did just four years ago, new research from Abbey shows.

The lender's study found that the average first time buyer now takes out a loan of £130,000, whereas in 2003 this figure was closer to £75,000.

Furthermore, over half of all prospective new homeowners take out more than £150,000 – compared to just 16 per cent doing so in 2003.

"Our research shows that they have to borrow more and more to get even a small foot on the ladder," commented Abbey's head of mortgages Nici Audhlam Gardiner.

"Abbey is absolutely committed to the first time buyer market and continues to develop new mortgages to give these customers the help they need," she added.

The average first time buyer income multiple now stands at 3.37 times the typical first time buyer salary, the Council of Mortgage Lenders reported last month.

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