Londoners most likely to take out mortgage

Posted: 27 Jul 2007 13:51:28 GMT

It looks as though homeowners in London should have no problem selling their property in the future.

It looks as though homeowners in London should have no problem selling their property in the future.

New research shows that millions of Londoners intend to take out a mortgage in the next three years as they make the move onto the property ladder.

However, the figures from mform highlight that many first-time buyers will be getting themselves into a great deal of debt in order to finance their purchases.

Around 11 per cent of Londoners expect to borrow more than four times their salary, the highest percentage in the country.

People in Wales are a close second with ten per cent anticipating that they will need to do the same.

Those in the North East of England are the most likely to borrow excessively, with six per cent saying that they intend to take out a mortgage for more than five times their annual income.

Commenting on the figures, Francis Ghiloni from mform said that increasing house prices are to blame.

"The cost of servicing a mortgage has been rising steadily, and this is set to continue as many people are forced to borrow more in the light of rising property prices," he said.

"Between 2001/02 and 2005/06, the amount of money mortgage holders spent on their loans increased by around 44 per cent," added Mr Ghiloni.

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