Britons 'willing' to take on more debt

16-Jan-2007

Britain's first time buyers and repeat purchasers are increasingly willing to take on more debt, research suggests.

According to a recent study by Moneyextra, home movers and first time buyers used Moneyextra's search portal to locate mortgages for properties valued at an average of £223.310 over 2006, an increase of 7.44.

However, the amount of money borrowed during a mortgage application rose by nearly nine per cent, research by the company has shown.

"The figures suggest mortgage borrowers are willing to take on greater debt to secure the property of their choice," said Robin Amlot, a representative from Moneyextra.

"This month's shock rise in the Bank of England's base rate may make buyers put the brakes on but it's too early to tell," he added.

However, first time buyers, when considered as a separate group, appear to be less willing to take on greater levels of debt, with the average first time buyer mortgage totalling £141,950.89.

To find out about those mortgages specifically aimed at first time buyers, see our best buys for first time buyers table.

Moneyextra is a website offering comparisons on a range of financial products, including credit cards and personal loans.

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