First homes ‘becoming less affordable’

First homes are becoming less affordable for consumers around the UK, according to the latest figures from the Council of Mortgage Lenders (CML).

As debt management problems worsen for millions of people around the country, the CML data shows that the average British first-time buyer took on a mortgage loan worth 3.39 times more than their annual income during July, up 0.2 per cent on the previous month.

Moreover, the typical first-time buyer in the UK spent around 19.79 per cent of their monthly income on meeting mortgage repayment demands during July, according to CML research.

“Both market conditions and sentiment are coming off the boil, and affordability is ever more stretched, but consumers should not expect any immediate easing in the financial pressures they face,” said Michael Coogan, the CML’s director general.

Mortgage borrowers were spared more debt management pressures earlier this month as the Bank of England opted to maintain the base rate of interest at their six-year high of 5.75 per cent.