The Council of Mortgage Lenders has decided enough is enough and would like to set the record straight regarding the multiples in which first time buyers are financing mortgages. During the past year, there has been a number of headlines which indicate that first time buyers are borrowing as much as four or five times their income, these are wrong say the Council of Mortgage Lenders.
Their records show that the average amount borrowed is 3.37 times the salary. They agree that this is the highest on record, but it is still below what has been reported. The Council of Mortgage Lenders also aims to correct the perception of 100 per cent mortgages increasing for first time buyers. Their figures show that the number of 100 per cent mortgages has actually fallen by 3 per cent in the last two years. Whilst there may be instances where higher multiples have been accepted, these are one offs and are not the norm.
Our view
Many advisers and lenders are suggesting responsible borrowing, it is the general public themselves who sometimes want more than is available.
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