According to recent research, first-time buyers in the UK paid out 18.7 per cent of their household incomes on mortgage interest during April, which represents a new 15-year high.
Furthermore, as debt management problems increase across the country, the CML statistics show home movers are now also paying out proportionally more to service their mortgage interest than has been the case since 1992.
CML director general Michael Coogan commented: “Month on month we see affordability constraints for first-time buyers worsening.
“And with the impact of May’s interest rate rise still to be felt, many borrowers face higher costs in the coming months.”
Mortgage borrowers looking to clear debt quickly were spared another rise in the base rate of interest this month, but some experts anticipate an increase before the end of the summer.
Commenting, Cleardebt CEO, David Mond said: “History suggests that interest rate hikes take a few months to before consumers really feel their impact. Maintaining the Bank of England’s main economic target of a stable inflation rate may well see consumers suffer an increase in the interest they pay that, for some, will be unaffordable.
“This is especially likely in the case of consumers whose fixed-rate mortgages end soon.”