Monthly mortgage repayments for first-time buyers will eat up 40% of their gross income if the Bank of England pushes through a 50 basis point interest rate hike on Thursday.
Currently, the average monthly mortgage repayment for a new first-time buyer is £813, according to online property site Rightmove. This is 20 percent more than in January.
If policymakers opt for a 50 basis point increase, this figure would rise again to £1,030, which is equivalent to 40 per cent of the average first-time buyer’s gross salary. Since 2012, mortgage repayments have not accounted for a large proportion of exits, Rightmove said.
“First-time buyers trying to get on the ladder are currently facing average monthly mortgage payments that are