RSS FeedsMortgage costs for first time buyers get tougher
04/02/2008
According to the latest UK Housing review first time buyers are now contributing the highest contribution in a decade towards their mortgage. Figures suggest that the ratio for mortgage cost against income for first time buyers is at a record high.
The study was carried out by both the Chartered Institute of Housing and the Building Societies Association emphasises the competitiveness in the housing market and the evident effects.
During 2007 figures highlight a 1 per cent rise for those first time buyers who now have to dig deeper into their pockets and spend more of their hard earned income toward their mortgage costs. The major contributing factors seem to be the increases in houses prices and the costs of mortgages over the years. On the opposite end of the scale you have private rents that have struggled to keep up with incomes.
According to the author of the review Steve Wilcox he commented "Private renting has become far more competitive as an option for households compared to the cost of buying; the sector has grown by 21% in the last five years across the UK and is fulfilling a significant role in the housing market. With the rates of population and household growth outstripping current and planned new house building we are likely to see continuing growth of the private rented sector."