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FTBs 'borrowing more than in 1997'

First-time buyers (FTBs) in East Anglia are having to borrow almost two and a half times more money for a mortgage than they did ten years ago, according to new figures.

Norwich and Peterborough Building Society revealed that house price inflation has led to the average mortgage advance for FTBs in the area rising to £122,400 - up from £49,000 in 1997.

During the same period, average house prices have risen from £56,700 to £147,500.

Meanwhile, the firm stated that the average age of an FTB has also increased steadily, rising from 25 in 1997 to 34 today.

Antony Bromley-Martin, from the Norfolk Estate Agents Association, commented: "The fact that people are borrowing three times as much to buy a house sounds terrifying, but in reality money is worth more now than it was ten years ago and interest rates are lower."

He added that since interest rates are now closer to five per cent rather than ten per cent people can still borrow the same amount with the same monthly outlay.

The figures also found that the average multiple of an FTB's earnings required to buy a house has also risen, up from 2.37 times their income ten years ago to 3.3 times in 2007.

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02/04/2007 13:52:54

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