Abbey to offer 5x salary
Abbey, Britain's second-largest home loans provider, has raised the standard amount it will lend to house buyers to five times their single or joint salaries for those with an annual income of £50,000 or more.
Abbey says that it is responding to soaring house prices and has raised its multiplier in a bid to help first-time buyers get on the property ladder.
However, there are fears that buyers could over-burden themselves with debt by borrowing five times their salary. A couple on a joint income of £50,000 who borrowed £250,000 would have to meet monthly repayments of £1,400.
Abbey defended its lending policy "Lending five times salary may sound high but really is something we have to do given what is happening with house prices."
Abbey says that it is responding to soaring house prices and has raised its multiplier in a bid to help first-time buyers get on the property ladder.
However, there are fears that buyers could over-burden themselves with debt by borrowing five times their salary. A couple on a joint income of £50,000 who borrowed £250,000 would have to meet monthly repayments of £1,400.
Abbey defended its lending policy "Lending five times salary may sound high but really is something we have to do given what is happening with house prices."
posted by ew at
9:08 AM
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