Throughout London and the South East of England the loan-to-income ratio is roughly 3.65 instances, greater than different areas, evaluation from brokerage platform Acre has discovered.
Nevertheless, this rises considerably when seeking to London’s outer postcodes of Bromley (BR), Croydon (CR), Southall (UB), Enfield (EN), Sutton & Morden (SM) the place the loan-to-income ratio rises with UB being the best at 4.16x.
Common first-time purchaser loans in these areas exceed £250,000, a considerable distinction in comparison with the remainder of England, the place loans common than £189,000.
Acre evaluation suggests mortgage lenders are exhibiting extra urge for food to lend at greater loan-to-incomes.
Northern England demonstrates extra cautious borrowing, with first-time consumers not extending themselves past a 3.2x loan-to-income ratio and all areas besides Cumbria and Newcastle having a median LTI nicely underneath 3x.
Scotland reveals a decrease 2.86x loan-to-income ratio, but the proportion of mortgage to property worth is among the many highest within the UK, with FTBs borrowing a median of 82% of the property’s worth. The common mortgage for first-time consumers in Scotland is now £167,508.
