First-time buyers still face property pain
17 November 2006
Overall annual property prices rises may be in single figures but first-time buyers still face double digit annual house price inflation.

First-time buyers are still bearing the brunt of rising house prices. Over the 12 months to October 2006, the average first-time buyer property value searched against on Moneyextra.com’s mortgage comparison tool rose by 12.6 per cent to £176,241.

That compares with a rise of 8.13 per cent to £268,508 for those looking to move to a new home and a rise of 4.% per cent for all properties to £217,098.

The average mortgage comparison carried out by first-time buyers rose to £140,991, a loan-to-value ratio of 80 per cent. This leaves first-time homebuyers to put together a deposit of more than £35,000 - equivalent to more than 150 per cent of average annual earnings!

The average value of mortgages completed by AWD Moneyextra customers in October was £146,203.17, up by 8.37% on the average value of loans completed in October 2005 (£134,909.65). The overall average value of loans completed during the first 10 months of the year (Jan-Oct 06) was £142,029.34.

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