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First-time buyers `face record mortgage repayments`

12/06/2007

People struggling to get on the property ladder are facing the highest mortgage interest repayments in the past 15 years, according to new figures.

Data from the Council of Mortgage Lenders (CML) reveals that first-time buyers in April paid 18.7 per cent of their income on mortgage interest, which could lead to debt and financial problems.

This figure is up from 18.3 per cent in March and is also an increase on the 16.3 per cent figure from April 2006.

CML director Michael Coogan commented on the findings, saying: "Month on month we see affordability constraints for first-time buyers worsening.

"And with the impact of May`s interest rate rise still to be felt, many borrowers face higher costs in the coming months."

To help combat future base rate hikes, many first-time buyers are opting for fixed-rate mortgages, the CML states.

Some 88 per cent of those purchasing a home for the first time selected this type of loan, according to the statistics.

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