Interest rate rises have pushed up mortgage interest payments for first-time buyers to their highest levels for 15 years, according to the Council of Mortgage Lenders (CML) .
The data shows that in April first-time buyers paid 18.7% of their income on mortgage interest. This is the highest level since 1992 and up from 18.3% in March and 16.3% in April last year. Rising rates have also affected home movers, who paid 16.3% of their income on mortgage interest in April - also the highest level since 1992. Borrowers will see further increases in the proportion of income they spend on mortgage interest payments once May's interest rate rise kicks in, despite the Bank of England’s decision last week to hold rates at 5.5%. A growing number of first-time buyers al...
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