Mortgage interest is taking its largest percentage of earnings
for homeowners for 16 years, but lenders are warning that things will
get worse before they get better. The Council of Mortgage Lenders
has issued figures which show how rising interest rates and house
prices have taken their toll on Britain's pay
packets.
Mortgage interest took 17.6% of homeowners'
take-home pay in October the highest level since 1992. For first-time
buyers the figure is even higher, at 20.6%.
With the figures, the CML also warned that homeowners will
struggle to even get a mortgage as lenders tighten their own lending
criteria.
