BORROWING HITS A PEAK

First time buyers borrowed a record 3.6 times their income in July to get on the property ladder.

The average figure was up from 3.59 in June and 3.55 a year ago, said trade body UK Finance.

But record low interest rates mean it’s easier for borrowers to keep up their repayments – for now at least.

The average interest on a first time buyer’s mortgage takes up 8.2% of their income, or 17.4% if they’re also repaying the capital.

That’s down from 9.3% and 18.1% respectively a year ago.

The average first time buyer in July was 30 and borrowed £139,000.

Elsewhere, people moving home borrowed £7.1billion in July, down 9% on June but up 15% year on year.

Remortgaging jumped 12% compared to June, and year on year, as owners switched deals.