According to research from mform.co.uk, 29 per cent of the adult population – some 13.89 million people - intend to take out a mortgage over the next three years. However, as property prices rise, 56.65 per cent of these will be for more than three times salary levels.
Mortgage income multiple / Number of people intending to take out a mortgage over the next three years for this amount / Percentage of people intending to take out a mortgage over the next three years
Equivalent of salary / 463,000 / 3.33 per cent
Up to two times salary / 1.389 million / 10 per cent
Between two and three times salary / 4.167 million / 30 per cent
Between three and four times salary / 4.167 million / 30 per cent
Between four and five times salary / 2.315 million / 16.66 per cent
Between five and six times salary / 926,000 / 6.66 per cent
More than six times salary / 463,000 / 3.33 per cent
Francis Ghiloni of mform.co.uk said: “The average UK property has increased dramatically in recent years, growing by 8.9 per cent during the past 12 months alone (according to Land Registry figures). This rise means that many people now have to borrow more in order to buy their next property. Indeed, we estimate that the average mortgage holder now pays over £7,000 a year on their mortgage, a rise of over £2,000 since 2004.”
