14m Britons to take out mortgages by 2010

Research from mortgage company mform.co.uk has revealed that almost 14 million Britons intend to take out a mortgage within the next three years, with over half saying they will pay more than three times their annual salary.

The study found that 13.89 million Britons will take out a mortgage by 2010, with 56 per cent of these loans coming in at over three times the borrower's salary.

Just 3.33 per cent will take out a loan equivalent to their income – the same number who will take out a loan worth six times their earnings.

"The average UK property has increased dramatically in recent years, growing by 8.9 per cent during the past 12 months alone," noted mform's Francis Ghiloni.

"This rise means that many people now have to borrow more in order to buy their next property. Indeed, we estimate that the average mortgage holder now pays over £7,000 a year on their mortgage, a rise of over £2,000 since 2004," Mr Ghiloni added.

The government recently suggested that it was looking at making long term fixed-rate deals more widely available in an effort to combat future price shocks similar to that expected later this year, when millions of borrowers will come off fixed-rate deals to be faced with higher interest rates.



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