First-time buyers take record loans

RISING house prices are forcing first-time buyers to take on record debt. New figures show that the average first-time buyer today is taking out a mortgage equal to 3.59 times their salary.

This is the highest figure on record, up from 3.28 five years ago. In 2009, first-time buyers borrowed less than three times their income on average.

Experts say the reason for the increase is that house prices are rising faster than wages, meaning buyers need to take on bigger debts to get on the property ladder.

In the past year, house prices have risen 4.9 pc to more than £223,000, whereas the average first-time buyer’s salary has risen just 1.3 pc.