Britons chasing high prices despite debt

Moneyextra said that in 2006, the average value of property searched on its mortgage comparison tool went up by 7.44 per cent to £223,310, while the average mortgage amount went up even more sharply at 8.91 per cent.

Robin Amlot, from Moneyextra, commented: “The figures suggest mortgage borrowers are willing to take on greater debt to secure the property of their choice.

“This month’s shock rise in the Bank of England’s base rate may make buyers put the brakes on but it’s too early to tell.”

However, the situation for first-time buyers (FTBs) is slightly different. While FTBs had to contend with an 8.44 per cent rise in average property prices, the average mortgage size being considered by these buyers rose by just over four per cent.

According to the Royal Institution of Chartered Surveyors, couples need nearly 82 per cent of joint take-home income to fund the initial buying costs of a home.