Over the 12 months to November 2006, the average first-time buyer property value searched against on Moneyextra.com’s mortgage comparison tool rose by 14.05 per cent to £182,113 – more than twice the rate of property price inflation across the housing market.
It compares with a rise of 6.27 per cent to an average £268,201 for those looking to move to a new home, which is down by a marginal £307 on October 2006.
The overall rate of increase in house prices in November 2006 was an annualised 6.7 per cent but the average amount being borrowed has risen by 8.8 per cent in the last 12 months.
Robin Amlôt, of Moneyextra.com, said: “House price inflation is being outpaced by the rate at which we’re going deeper into debt to afford the roof over our heads.”
The brunt of inflation is being borne by FTBs with the average amount borrowed by FTBs in November 2006 up by 9.9 per cent on year ago levels, compared to an increase in borrowing by home movers of 7 per cent.
