Tuesday, 16 September 2014

Mortgages agreed at 10 times salary

Nearly 80,000 mortgages for homes worth more than eight times the borrower’s salary were agreed at the height of the property boom.

Figures compiled by the Communities and Local Government department show 79,796 mortgages were agreed on homes worth more than eight times salary in 2007, accounting for 7.9 per cent of all mortgages.

Nearly half of those were on properties worth more than 10 times the borrower’s salary.

The majority of loans agreed were on homes worth six times salary or less, at 80.6 per cent, and the remaining 11.5 per cent were for homes worth between six and eight times salary.

The figures are estimates produced by CLG from Council of Mortgage Lenders data in response to a written question in Parliament.

A spokeswoman for the CML said: ‘The average ratio in 2007 was 3.16 per cent, so you can see the vast majority of lending has been on relatively conservative terms.’

She added that the ratio tightened in 2008 to 3.06 as lenders responded to the economic slowdown.

Have your say

You must sign in to make a comment

sign in register

Related

Articles

  • Gloomy forecast

    10 December 2013

  • Loans for first-time buyers reach record high

    12 September 2014

    First-time buyers are taking out the biggest loans on record, according to data released by the Council of Mortgage Lenders (CML) yesterday.

  • Stuck in the past

    20/09/2013

    Too much of the received wisdom about the housing market is based on post-war circumstances that are unlikely to happen again, argues Jon Neale

  • Help to buy loans 'total £1 billion'

    2 January 2014

    The government’s help to buy scheme has created nearly £1 billion of mortgage lending in less than three months, the prime minister said today.

  • Home front

    11 September 2014

Resources

  • Reaching crisis point

    02/05/2014

    Tenants on the verge of eviction are being helped to remain in their homes by a recently formed social enterprise that is saving their landlords significant sums in the process. Daniel Douglas finds out how

  • A bright idea

    22/11/2013

    Why has a Sunderland-based social landlord set up a charity providing solar powered lamps to communities in Africa? Martin Hilditch finds out

  • Downsizing with the bedroom tax

    17 July 2014

    The price for underoccupying a home is high for many vulnerable people. Jess McCabe visits Stoke-on-Trent to find out how landlords are attempting to help

  • After a fashion

    14/03/2014

    Regenda’s community apprentice scheme gives struggling tenants just the help they need.

  • The apprentice

    17/01/2014

    Faced with thousands of pounds of debt and uncertain job prospects, school leavers are increasingly taking up apprenticeships as an alternative to university. Gwen Smith meets apprentice turned housing officer Jordan McKenna to discover the benefits of learning on the job

IH Subscription