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First-time buyers 'can no longer lie about income to increase mortgage size'

15-Mar-2010

First-time buyers find it harder to inflate their income in order to secure a larger mortgage compared with people in similar positions in years gone by, according to an expert.

Helen Adams, managing director of FirstRungNow, says the days of being able to claim a higher salary are gone.

"As part of the mortgage advising process you have to verify peoples' income so it is getting harder to inflate your income these days and get a higher loan in that way," she says.

Squeezing every last penny out of a mortgage provider may not be a shrewd approach, in any case, with even a small rise in interest rates potentially leaving first-time buyers unable to repay their loan.

Anybody having trouble meeting mortgage repayment should speak to an adviser and aim to reschedule deadlines, Ms Adams advises.

According to Callcredit, a drop of just £300 a month in income would leave 13 per cent of 35 to 44-year-olds unable to pay their mortgage.

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.

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