Qualified advisers answering your
Financial Questions
call 0800 092 1245

CML sees mortgage repayments hit heights

The most recent rises in interest rates have contributed to mortgage interest payments for first-time buyers reaching their highest level for 15 years.According to the latest report from the Council of Mortgage Lenders (CML), first time buyers were spending an average of 18.7 per cent of their incomes on mortgage interest in April.This level is the highest since 1992, the CML revealed, having risen from a figure of 16.3 per cent in April 2006.While the Bank of England announced last week that interest rates will be held at 5.5 per cent, further rate rises are expected over the summer, prompting the CML to predict interest on mortgages to continue to grow.Commenting on these latest figures, CML director general Michael Coogan said: "Month on month we see affordability constraints for first-time buyers worsening."The vast majority of borrowers will be able to absorb higher mortgage payments."But with two million fixed-rate loans coming to an end over the next year and a half, many borrowers should anticipate that their mortgage costs are likely to rise and should be planning ahead."News of the trend comes as first-time buyers are also struggling with the increasing need to pay stamp duty on a new property, with 58 per cent of buyers having to pay the tax in April in comparison to 51 per cent in the same month in 2006.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details