First-Time Buyers Face Highest Mortgage Costs In 15 Years

First-time buyers are facing a "double whammy" of spiralling mortgage costs and stamp duty charges, according to a report out today from the Council of Mortgage Lenders (CML).

Interest rate rises have pushed up mortgage payments for first-time buyers to the highest level in 15 years. In April, 18.7 per cent of the average first-time buyer income was spent on mortgage interest - the highest level since 1992 according to the report.

Steep rises in house prices also mean that more and more people must pay stamp duty on their first property. In April, almost two thirds of first-time buyers were forced to pay stamp duty on their purchase, up from 51 per cent over the same period last year.

Rising interest rates have also affected home movers. Mortgage payments for this group are at their highest level since 1992 with 16.3 per cent of incomes being spent on mortgage interest.