First-time buyers pay up to half of wages on mortgage

First-time buyers in London are spending up to 50% of their wages on mortgage repayments, according to a recent survey.

The survey by the Woolwich also showed that first-time buyers are getting older, as house prices continue to increase.

The situation across the UK as a whole is slightly better for first-time buyers. Nationwide, 32.4% of income is earmarked for mortgage repayments.

People who buy their first property in their 20s are paying an average £586 per month on their mortgage. This figure has increased by 66% since 2002.

Andy Gray, head of mortgages at the Woolwich, believes the situation is set to get worse for first-time buyers. He said: "For those in their 20s not already on the property ladder, the outlook for getting on it doesn’t look good, especially with interest rates likely to rise further.

"We fully expect the average age of first time buyers to go up until people are well into their 30s."

However, research by Bradford & Bingley shows that people are still determined to get their foot on the property ladder.

Their annual first-time buyer report showed that 60% of people looking to buy their own home are sacrificing luxury goods, meals out and holidays, a fifth are working overtime and 12% have taken second jobs to try and secure their first home.

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