(1888PressRelease)
July 18, 2007 - First-time buyer (FTB) income multiples are at record levels, reaching 3.37 times the average FTB income in May, compared to 3.33 times in April.
To make matters worse, mortgage interest payments were at their highest level since 1992 in May, reaching 19.1 per cent.
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The amount of income that goes towards making mortgage payments has also increased, with the average person forking out 16.6 per cent of their wages in this way in May, compared to 16.3 per cent in April.
The CML figures do not take into account the two 0.25 per cent base rate rises announced by the Bank of England in May and July and the organisation warns that potential buyers are struggling to get together the money to purchase a property.
"For anyone wanting to get a foot on the property ladder or move house, each month affordability is becoming worse," warned CML's director general Michael Coogan.
"The record number of borrowers who are now paying stamp duty makes a difficult situation even worse, despite the financial windfall to the Treasury. This needs to be addressed urgently."
Chris Newman, director of National Homebuyers says for some releasing equity in their home is the only option available to them. "We oversee the purchase of hundreds of properties every year where the vendor is distressed and wants to stay in their home.
"National Homebuyers are happy to arrange a 'Sell and Rent Back' agreement for any UK homeowner, allowing them to sell their property, thus alleviating the mortgage burden while pocketing the equity in their property.
"This suits many people's situation, especially as 'Sell and Rent Back' is not as complex as, nor restrictive as, most Home Reversion equity release schemes."
National Homebuyers is the UK's leading fast purchase property firm, guaranteeing a quick property sale for any UK property, regardless of the vendors' reason for sale or the property's condition or location.
More information on their equity release alternative can be found at www.nationalhomebuyers.co.uk
