Affordability for first-time buyers gradually worsened throughout 2007, according to the Council of
However the organisation claimed that recent cuts in the base rate will ease this financial pressure throughout 2008.
Last week the Bank of England’s monetary policy committee cut the base rate by a quarter-point to 5.25 per cent.
“Affordability has been stretched further in 2007 but the recent base rate cuts and the expectation of future cuts will ease debt servicing burdens in 2008,” said CML director general Michael Coogan, adding that borrowers coming to the end of fixed-rate
First-time buyers will benefit from increased affordability as the year progresses, Mr Coogan continued, citing slower inflation growth and lower
CML figures show that in December the average first-time buyer had to contribute 20.7 per cent of their income towards
In anticipation of base rate reductions 64 per cent of borrowers opted for fixed-rate
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