More than two million people are expected to borrow at least four times their salaries within the next three years to get on the property ladder, research suggests.
Analysis of the views of 2,200 adults by online mortgage firm mform.co.uk found 2.08 million individuals aged 34 or under would borrow four times their salaries.
It also found 828,000 recipients plan to borrow over five times their income and 290,000 will borrow over six times.
Francis Ghiloni, of mform.co.uk, says relentless property price increases might be good news for some, but is certainly not for others.
“Around 36% of people aged 24 or under who intend to take out a mortgage over the next three years claim that they have will to borrow more than four times their salary,” he says.
“As property prices continue to rise and wage inflation fails to keep in line with this, many young people looking to get on to the property ladder will have to take on huge debt.
“Many will have interest only mortgages because they will not be able to afford to repay the capital they have borrowed, and they will be heavily exposed to any falls in property prices and increases in interest rates.”
The online firm says overall, some three-and-a-half million people intend to borrow over four times their salaries between now and 2010 when they take out a mortgage, and some 56% of these will be aged 34 or under.
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