Mortgage borrowers ‘willing to take on lengthier loans’

Over 3.7 million would-be homebuyers say they would be happy to take on a mortgage that amounted to five times the annual wage in order to get onto the housing ladder in the UK, figures from online mortgage search service mform.co.uk suggest.

Furthermore, around 1.38 million UK consumers would be willing to borrow an amount that is six times their yearly income, the latest study shows.

Chief executive of mform.co.uk Eammon Rice commented: “There are still major risks involved in borrowing five or six times your salary. Customers need to ensure they are receiving the best possible deal and that repayments are affordable.”

“There is no point getting on to the property ladder only to have your house repossessed,” he added.

Experts widely expect that the Bank of England will increase the debt management pressures on homeowners and credit consumers in July by raising the base rate of interest to 5.75 per cent.