mform.co.uk analysis reveals average first-time buyer could be borrowing £200,000 by 2012.
Analysis of industry data by online mortgage company mform.co.uk reveals that between 1996 and 2006, the average mortgage taken out by first time buyers has increased by 173.6% or around 10.7% a year. If this continues, mform says that by 2012, the average mortgage taken out by a first-time buyer will top £200,000, up from around £120,500 today or £39,811 in 1996.
Year Estimated median first-time buyer mortgage
2008 £133,468.32
2009 £147,746.94
2010 £163,553.11
2011 £181,050.25
2012 £200,419.25
2013 £221,860.37
Francis Ghiloni, mform.co.uk marketing and business development director, said: “First- time buyers increasingly need to find huge sums of money in order to get on to the property ladder. For a first-time buyer to take out a mortgage that is three times their salary today, we estimate that they would need to be earning £40,190, but by 2012, it would need to be a staggering £66,806.
mform.co.uk, which allows customers to compare mortgages based on the true cost including rate, fees and other features, says that many first-time buyers can dramatically cut the cost of their mortgage by making sure that they search the entire market for the best deal for them.
mform.co.uk offers consumers a free, unique and innovative online service enabling them to conduct the most comprehensive search of mortgages available. It allows people to identify all of the key features and benefits of every mortgage, and calculate its true cost in terms of rates and charges. This helps consumers develop a personalised list of best-buy mortgages that meet their specific needs.
The search process is free of confusing sponsored links and there are no distracting adverts from lenders during the mortgage search process. mform.co.uk is completely independent and it feels that adverts might unfairly influence a person’s choice of mortgage. Users of the service are able to link through directly to lenders’ mortgage application departments.
The service, which is free and easy to use, can be found at www.mform.co.uk.