First-time buyer loans almost doubled

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by Kay Murchie

According to research from Abbey Mortgages, the average loan taken out by a first-time buyer has almost doubled in 4 years. The average mortgage taken out by those aiming to get on to the property ladder is now at £130,000, compared with £75,000 in 2003.

An increase has also been noted in those borrowing more than 75% loan to value, with 13% more people taking out such a mortgage.

A spokesperson for Abbey commented that first-time buyers are having to borrow more and more to get onto the first step of the property ladder.

Abbey Mortgages also established that only 23% of borrowers would consider a 25-year fixed-rate mortgage.