Abbey Mortgages identifies hike in FTB loans

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Abbey Mortgages identifies hike in FTB loans

Wed 1st Aug 2007

Abbey Mortgages has revealed that the average loan taken out by first-time buyers (FTBs) has almost doubled in the space of four years.

The bank calculates the average mortgage to be taken out by those looking to get on the property ladder has reached £130,000, compared with £75,000 in 2003.

There has also been an increased in those who are borrowing more than 75 per cent loan to value, with 13 per cent more people taking out such a mortgage.

Nici Audhlam Gardiner, head of mortgages at Abbey, said: "Our research shows that [FTBs] 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."

In a recent study, Abbey Mortgages found that only 23 per cent of borrowers would consider a 25-year fixed-rate mortgage.

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