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Cash required for FTB mortgages 'at five-year low'

14-Jan-2010

The proportion of income a first-time buyer (FTB) must use to pay the interest on a new mortgage is at a five-year-low, according to the Council of Mortgage Lenders (CML).

Figures for November show 14.4 per cent of FTBs' salaries were used to meet mortgage repayments, down from 15.1 per cent in October - and the lowest it has been since May 2004.

Other than a short spell at 10.2 per cent in 1996, the rate is the lowest for first-time buyers since the CML started recording the statistics in 1974.

It could present a good opportunity for FTBs to get on the property ladder - whether with a straightforward mortgage, or a shared mortgage or shared equity arrangement.

Michael Coogan, CML's director-general, sounded a warning though by saying: "With substantial deposits still needed to secure a mortgage, the market will continue to be relatively restrained for some time to come."

Another problem for FTBs could be a lack of affordable housing - with a recent Halifax study suggesting areas such as London and Northern Ireland currently offer little or no realistically-priced property.

How to buy a house from finding your first property, first time buyer mortgages, mortgage advice, shared equity, shared ownership, joint ownership, part buy part rent and HomeBuy. All a first time buyer could need as well as first time buyer news at FirstRungNow.com.

Lending and stamp duty 'are still problems for FTBs'
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House price rise of 1% could be good news for first-time buyers

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Interest rates are low but could rise? Is this a good time to buy?

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