December lending highest on record

The latest data from the CML reveals affordability was stretched even further for those entering the market in December, as first-time buyers’ (FTBs) income multiples reached a record high of 3.31 and the proportion of income spent on servicing their mortgage interest payments rose to 17.9%. Over 2006 as a whole, the number of mortgages to FTBs increased by 19%, while their value increased by 34%, reflecting rising house prices. The number of mortgages to those moving house increased by 11% in 2006, with their value increasing by 30%. The data also reveals interest-only loans incre...