Mortgage borrowers are now spending more of their total household income on mortgage repayments than ever before, according to a new report.
The problem is particularly bad for first-time buyers, who are paying around a third of their income towards their mortgage, the Barclays study found.
In the capital, some young professionals were found to be paying as much as 50 per cent of their total household income towards their mortgage.
Andy Gray, head of Mortgages at the Woolwich, predicted that things will get even worse for people in this age group and speculated that the age of the average first-time buyer will rise to 29 years old.
“For those in their 20s not already on the property ladder the outlook for getting on it doesn’t look good, especially with interest rates likely to rise further,” he said.
He added: “We fully expect the average age of first-time buyers to go up until people are well into their 30s.”
In other related news, Halifax bank has predicted that house price inflation will slow down in the latter half of this year.
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