A survey has shown first time buyers are borrowing record amounts of money to get on to the property ladder. In April the typical amount borrowed was 3.33 times their income and went up to 3.37 in May. Those already on the property ladder are also borrowing record amounts; in April the typical amount borrowed was 3.01 to 3.03 in May.
In May 89 per cent of first-time buyers took out fixed rate mortgages, which is an all time high that was set in March and 73 per cent of those already on the property ladder also took this root which has risen by 1 per cent from last year.
Last month showed the fastest annual inflation of house prices in two years which was 11.1 per cent. To curb the pressure Interest rates have risen in 5 times from The Bank of England within a year, but the housing market still seems to be holding up.
It is expected by some commentators that the speed of rising house prices will slow down by the end of the year as the recent record rise is felt, but most economists expect that it is only likely to increase by six per cent by the end of the year.
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