(1888PressRelease)
May 06, 2007 - According to Ian Brown of Citizens Advice Scotland, the offer of a mortgage up to six times a buyers' salary is encouraging people to purchase properties they can't afford.
"It is a huge worry for many people and allowing people to take on mortgages of up to six times their salaries pushes them closer to the edge financially," he told the Herald.
Such mortgage products are available from lenders including Royal Bank of Scotland (RBS), Northern Rock, Intelligent Finance and Alliance & Leicester.
It is thought they are being made available as rising house price inflation is pricing an increasing number of Britons out of the market - forcing them to take on higher debt burdens.
The move has also been criticised by Archie Stoddart, director of Shelter Scotland.
"Ordinary families are being forced into taking on the burden of mortgages due to the dire shortage of good quality affordable rented housing," he told the Herald.
Property expert Julian King adds: "It is despicable that mortgage lenders are now increasing their margin by offering such huge mortgages to people on which they are confident they will default.
"People are being exposed to huge financial risks which in turn will cause untold damage to the property market.
"We already have the highest number of repossessions since the early nineties and this will increase dramatically."
Mr King is managing director of National Homebuyers, the UK's leading fast purchase property company that has been solving many peoples' financial problems by purchasing their houses before they are repossessed.
