Young Brits warned over mortgage debt

Figures from LV= show that around 15 per cent of British consumers aged under 35 would be willing to take on mortgage arrears amounting to four times their annual income.

And close to seven per cent of would-be homebuyers in this age bracket are willing to take on a mortgage deal worth upwards of six times their salary, despite rising rates of interest, LV= has revealed.

“These were hypothetical responses and we fear that, under genuine pressure to realise their home-buying dreams, many more buyers will choose to walk the mortgage highwire without a financial safety net,” said Nigel Snell, communications director at LV=.

Millions of homeowners in the UK have seen their debt management difficulties worsen in recent months in the wake of several rises in the cost of borrowing introduced by the Bank of England.