Mortgage loans in the UK have risen to up to six times annual earnings, the highest level since 2008, according to a report by DJ Alexander. The average mortgage payment for first-time buyers is now £4,500, compared with just over £2,000 five years ago, while monthly repayments are rising at an even faster rate. It added that, after average house prices peaked at £190,032 ($245,600) in September 2007, it took them seven years to recover after the 2008 crash. Although these very high ratios are available the average scale of lending is much lower. However, managing director David Alexander said, although some ratios were very high, they tended to be on the more "extreme edges of the market".
Mortgage loans in the UK have risen to up to six times annual earnings, the highest level since 2008, according to a report by DJ Alexander. The average mortgage payment for first-time buyers is now £4,500, compared with just over £2,000 five years ago, while monthly repayments are rising at an even faster rate. It added that, after average house prices peaked at £190,032 ($245,600) in September 2007, it took them seven years to recover after the 2008 crash. However, managing director David Alexander said, although some ratios were very high, they tended to be on the more "extreme edges of the market".