FTBs have to borrow 'four times salary'

A mortgages expert has revealed that first-time buyers are facing their toughest test yet in trying to get onto the UK property ladder.

Michael Coogan, director general of the Council of Mortgage Lenders, has said that each month it is becoming harder and harder for young people to buy a home.

His words come as new figures from mortgage broker mform.co.uk reveal that 37 per cent of 18 to 24-year-olds admit they will have to borrow four times their salary to purchase a property.

Mr Coogan warned: "The risk of a payment shock is real. Financial difficulties are set to rise so it is essential borrowers speak to their lender if they are having repayment difficulties to avoid becoming another arrears statistic."

In what some analysts are describing as a 'crisis', the Bank of England's decision to raise interest rates last week could see up to two million homeowners face higher mortgage repayments as their fixed rate deals come to an end.

The added costs are likely to see a surge in the number of homes being repossessed, with the figures showing that last year, the number of families who lost their homes rose by around 11,000 from 2004.

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