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6 August 2007

First-time buyers stretch themselves

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by Kay Mitchell

First-time buyers stretch themselves

LV=, formerly known as Liverpool Victoria, have commented that young people are prepared to stretch themselves when taking out a mortgage.

In spite of several rises to the interest rate, 1 in 6 adults under the age of 35 will borrow more than 5 times their salary in order to get onto the property ladder.

A spokesperson for LV= said that 30% of people would ignore financial protection in favour of taking out as large a mortgage as possible. LV= are anxious that to obtain their dream home, many buyers will choose to stretch themselves and not have a financial safeguard.

LV= concluded that first-time buyers in the south-east are the most daring, with 7% of those surveyed admitting they would consider borrowing as much as 7 times their annual salary.

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