Would-be buyers need £41k salary move from rental sector

15 2008
Anyone looking to take a first step onto the property ladder will have to be earning at least £41,000 in order to be considered for a mortgage.

That is according to a new report from the Scottish property company mform.co.uk, which revealed that, as lenders look to insulate themselves from the fallout of the global credit crisis, would-be first-time buyers are likely to find it ever more difficult to make the move out of the rental sector.

Notably, this figure of £41,000 represents a rise of around £7,000 in the space of just 12 months – roughly the length of time since the credit crunch first hit the world's economies.

Francis Ghiloni, marketing and business development director at mform, noted: "With the mortgage market contracting, lenders are getting tougher on how much they’ll lend and what level of deposit they’ll demand.

"Availability remains the major issue for the mortgage market, but the focus for borrowers should be on the true cost of their loan, taking into account all fees as well as the monthly payments," he added.

Given that two of the UK's largest lenders have reported falling house prices over the past few weeks, it is likely that any uncertainty among prospective buyers has been magnified, with renting being seen as even more attractive to many.ADNFCR-1219-ID-18734908-ADNFCR

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