Cost of FTB mortgages rising sharply

The cost of a first-time buyer mortgage has risen by ten per cent every year since 1996, research from mform.co.uk has revealed.

The firm's research has found that a prospective homeowner looking to take out a mortgage will now pay an average price 173.6 per cent higher than they would have done a decade ago.

If current trends continue, mform advises, the average first time buyer mortgage – currently £120,500 – will rise to £200,000 by 2012.

"First-time buyers increasingly need to find huge sums of money in order to get on to the property ladder," commented mform.co.uk marketing and business development director Francis Ghiloni.

"For a first-time buyer to take out a mortgage that is three times their salary today, we estimate that they would need to be earning £40,190, but by 2012, it would need to be a staggering £66,806," Mr Ghiloni added.

An increasingly large proportion of parents are helping out their children in their efforts to get onto the property ladder, it was revealed last week.


© Adfero Ltd