First time buyers 'willing to borrow five times their salary'

27-Jun-2007

Around one in 12 prospective first time buyers say they would be happy borrowing amounts worth five times their salary or more, new research has revealed.

A study from mform.co.uk has found that over 3.7 million of those who are looking to apply for a mortgage in the next three years were prepared to pay such fees.

Furthermore, approximately 1.38 million would take out a mortgage costing six times their salary, the study noted.

"Borrowing five or six times your salary would have been unthinkable just a few years ago. But with average house prices pushing well past £200,000 it is understandable that people are becoming more willing to borrow more," advised mform.co.uk chief executive Eamonn Rice

"They've seen house prices continue to increase despite predictions that the housing boom is set to end in a bust. And it is the case that the old days of mortgage customers only borrowing a maximum of three times their salary are long gone," Mr Rice added.

In recent weeks borrowers have been urged to take up fixed-rate deals as soon as possible due to the likelihood that interest rates will rise again in the near future.

To find out more about this mortgage and other mortgages for first time buyers, click here.

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