First-time buyers are also borrowing more money than ever. 53 per cent have a mortgage of more than £150,000 compared to just 16 per cent four years ago – a 231 per cent increase. The research also shows an increase in the number of people borrowing more than 75 per cent loan-to-value – up by 13 per cent to almost 80 per cent in 2007, versus only 67 per cent in 2003.
Nici Audhlam Gardiner, head of mortgages at Abbey, commented: “We are fully aware of the difficulties first-time buyers have in getting onto the property ladder. Our research shows that they have to borrow more and more to get even a small foot on the ladder.”
