With the average city home now costing over six times the average borrower’s income, an increase over the last 12 months – combined with some lenders tightening their lending affordability – means that movement on the property ladder is becoming a challenge for some potential buyers.
Average property prices across UK cities are currently at their most unaffordable since 2009, according to a report released by Lloyds bank. The report stated that while affordability had become more difficult, it remained lower than the 2008 level, when house prices reached over seven times borrower’s income.
House prices vary greatly across the country. For instance, in Oxford the average is £361,000 – a figure that is, staggeringly, 11 times greater than most people’s income, making it the least affordable place to live in Britain.
Stirling came out as the most affordable city, with an average house price of just over £158,600, putting it at just under four times local earnings.
Property analyst firm Hometrack revealed that an increase in the volume of property sales was a clear indication that house prices may continue to rise. However, the pace of the increase was likely to slow, as borrowers hit the limit of maximum borrowing from lenders.
When you choose a career in mortgage advice, you will have completed your CeMAP training and passed the exam in order to fully comply with the regulation set by the Financial Conduct Authority (FCA). You will then be able to complete a full assessment of each customer’s affordability and advise how much they are able to borrow.