time buyers paying more interest
Mortgage interest payments have been
forced upwards by high interest rates for first-time buyers.
Survey brought forward by CML indicated that first time buyers
during April were paying a staggering 18.7 per cent of their
work income simply on interest via their mortgage
was the highest data recorded since 1992. High interest rates
also affected home movers when in April they paid 16.3 per cent
on interest rates, again the highest peak for a 15 year duration.
Looking at today’s figures, CML Director, Michael Coogan
said: "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.
"The vast majority of borrowers will be able to absorb higher
mortgage payments. But with two million fixed-rate loans coming
to an end over the next year and a half, many borrowers should
anticipate that their mortgage costs are likely to rise and should
be planning ahead," he added.
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