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Mortgages Eat Up Half Wages Of Some First-time Buyers

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Guest wrongmove

Mortgages eat up half wages of some first-time buyers

"First-time house buyers are being forced to earmark up to half their income to pay their mortgages after taking on high levels of debt to scramble on to the property ladder, one of the leading home-loan lenders warns today.

Amid widespread City speculation that the Bank of England will push up the bank rate to 5.75% today, the Woolwich says first-time buyers were paying close to a third of their income in mortgage charges, rising to almost 50% for people in their 20s in some parts of London.

Andy Gray, the Woolwich's head of mortgages said: "The last thing any of them need is a further increase in base rates."

The research from the Woolwich - showing a 66% increase in mortgage payments for people in their 20s over the past five years as a result of soaring house prices and higher bank rates - coincided with a warning yesterday from Citizens Advice of a sharp increase in financial distress among home owners. ....."

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Andy Gray, the Woolwich's head of mortgages said: "The last thing any of them need is a further increase in base rates."

No.

The last thing any of them needed was encouragement to borrow more than they need to prop up lender's commision and income stream.

Interest rates are low, very low historically. The only thing that has changed is the greed, short-termism and stupidity of lenders and those that set the prevailing rates.

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