First-time buyers ‘borrow three times their income’

First-time buyers are borrowing 3.24 times their income when purchasing a home, new statistics have shown.

According to data from the Council of Mortgage Lenders (CML), the typical first-time buyer needed less finance to purchase a house in July than they did during the previous month.

However, debt management is likely to be more of a problem for first-time buyers than home movers, as the latter demographic borrowed an average of 2.85 times their salary in July.

Director general of the CML Michael Coogan said that there are a number of first-time buyers who are waiting for the market to “stabilise”.

“Tighter lending criteria have clearly made it more difficult for first-time buyers to enter the market,” he added.

Meanwhile, Moneysupermarket.com recently stated that many lenders are cutting rates on a number of mortgage products, which could spell good news for would-be house buyers.