Brits paying record amounts for mortgages

Britain’s first time buyers are paying record amounts to obtain a mortgage, according to new Council of Mortgage Lending figures and carried in an article on the Royal Institute of Chartered Surveyors (RICS).

The statistics, published last month, show that the average first time buyer paid 3.21 times their annual income to secure a mortgage in June. By contrast, a year the average house price to income ratio for first time buyers was 3.06.

But the same figures show a 14 percent jump in the number of people taking out a buy-to-let mortgage from 34 800 in May to 39 500 in June – the highest number of first time buyers since December 2002.

First time buyers accounted for 36 percent of all new loans – unchanged since April.

The RICS website also reports that the UK number of purchase loans hit a six month high in July, according to new Bank of England figures.

The bank’s latest lending figures, published last week, shows that 120 000 loans were taken out for house purchase in July, up from 119 000 in June, but lower than the 121 000 recorded in January.

The bank’s figures back up those issued earlier last month by the Council of Mortgage Lenders showing that £30,4bn (about R419,5 billion) worth of loans were advanced in July - the second highest monthly figure ever recorded.

The Land Registry’s most recent monthly figures show a 7,7 percent increase over the year to June, the biggest increase since the beginning of 2005.
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