First time buyers may get into debt from massive outlay

MONDAY, AUGUST 21, 2006

Research from the Council of Mortgage Lenders (CML) has shown that first time buyers are paying more than ever before to get their foot on the UK property ladder. The new figures show that first time buyers in June are paying a record-breaking 3.21 times their income to achieve a mortgage.

According to the CML, these figures have increased from 3.06 times the salary in the same month for the previous year and from 3.2 times from May this year.

Michael Coogan, CML director general, said: "It is interesting to see that even tough average first time buyer income multiples are the highest on record, first time buyers are still finding ways of getting on to the property ladder. It is highly likely that more and more young buyers are turning to parents and grandparents to help them raise the deposit for their first home."

These high levels of debt could have serious repercussions though as home owners fall into considerable financial difficulties which, in some cases, become unmanageable. Just this week, the CML warned consumers that the level of home repossessions was at its highest for the last five years.

A debt consolidation package can assist consumers who have fallen into financial difficulty by providing a manageable way to pay off acquired debt.