First-time buyer costs up again

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by Kay Murchie

According to the Council of Mortgage Lenders (CML), first-time buyers are finding it increasingly expensive to get a foot on the property ladder with figures showing that just 28,400 people bought their own property in September, down from 34,800 in August.

Figures show that the average first time buyer spent 20.4% of their monthly income on mortgage interest payments, the highest level for 16 years.

Furthermore, lenders are responding to the global credit crunch by withdrawing 40% of mortgage deals in the last few months, so many first-time buyers will have failed to secure a loan.

Michael Coogan of CML said higher interest rates are now beginning to slow the property market in accordance with their recently published forecasts.

This week, The Royal Institution of Chartered Surveyors said that confidence among estate agents is at its lowest level since July 2005.