More Mortgage Misery As Houses Become A Luxury
THINGS don’t seem to be getting any easier for homeowners and for those trying to get a foot on that increasingly elusive first rung of the property ladder.
According to the Council of Mortgage Lenders, mortgages are at their least affordable level for 15 years right now, as the recent spate of interest rate hikes start to kick in.
In April, first-time buyers were paying 18.7% of their income for mortgage interest payments, a significant rise on the 16.3% paid the previous year.
If that wasn’t bad enough, an increasing number of first-time buyers are also having to contend with stamp duty. Indeed, 58% of virgin homebuyers had to pay the tax in April, a rise of 7% on the previous year’s figures.
Unfortunately, CML bigwig Michael Coogan doesn’t see things improving for a long time. Says he: “Month on month we see affordability constraints for first-time buyers worsening, and with the impact of May’s interest rate rise still to be felt, many borrowers face higher costs in the coming months.”
It seems that the simple, basic common-or-garden house has now become a luxury item.
Posted: 12th, June 2007 | In: Money Comment | TrackBack | Permalink
