First time buyers hit by 'double-digit' house price inflation

20-Dec-2006

First time buyers are continuing to bear the brunt of rising house prices, research suggests.

According to a study by AWD Moneyextra, first time buyers are facing average property prices of over £180,000, an increase of 14.5 per cent from the same period last year.

Despite house prices rising at an annualised rate of 6.7 per cent, borrowing has increased at a faster rate of 8.8 per cent.

First time buyers dismayed by another increase in property prices should seek out those companies setting up to help them find bargains.

"House price inflation is being outpaced by the rate at which we're going deeper into debt to afford the roof over our heads," said Robin Amlot at Moneyextra.

However, repeat purchasers are borrowing - proportionately -considerably less than first time buyers, despite property price increases.

For home movers, the average amount borrowed has increased by around seven per cent.

To find out which is the best first time buyer mortgage for your situation, contact a good mortgage broker.

Moneyextra offers comparisons on a range of financial products, including mortgages, credit cards and personal loans.

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