The average first time buyer loan is nearly twice as much as it was four years ago, according to research by Abbey Mortgages.
In 2003, the average first time buyer mortgage was £75,00, now, the figure is nearly double, at £130,000, with more than 50% of people borrowing more than £150,000 to buy their first home.
Abbey’s figures also reveal that there are more people borrowing a higher percentage of their mortage than before with the number of people borrowing more than 75 per cent loan to value going up by 13 per cent to almost 80 per cent in 2007, compared to 67 per cent in 2003.
Nici Audhlam Gardiner, Head of Mortgages at Abbey, said: “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. Abbey is absolutely committed to the first time buyer market and continues to develop new mortgages to give these customers the help they need.”
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