Thursday 5th July 2007
Repeated rises in the Bank of Englands interest rates are to hit first-time buyers hardest, it has been warned.
The comments come as the monetary policy committee votes to increase the base rate by 0.25 percentage points in July.
Research conducted by Barclays mortgage subsidiary Woolwich reveals that first-time buyers are now spending 32.4 per cent of their take-home pay on monthly repayments.
This compares with a national figure of 20.1 per cent for all age ranges - the highest since records began in 2002.
Head of mortgages Andy Gray predicts that this could see the average age of first-time buyers pushed up into the 30s.
"For those in their 20s not already on the property ladder the outlook for getting on it doesnt look good," he states.
"The last thing any of them need is a further increase in base rates."
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