A property agency has analysed the lending and housing markets to work out why so many mortgage applicants are couples.
Benham and Reeves analysed current house price data looking at the loan required in each area of the British property market after placing a 15 per cent deposit. The agency then looked at buyer purchasing power based on 4.5 times income using government earnings data.
The research shows that the average person in Britain, alone, would require a mortgage loan of £244,632 after placing a 15 per cent deposit of £43,170 on the current average house price. However, with the average person earning £35,481, it would make them eligible for a mortgage of just £159,665, leaving them £85,000 off the mark – that’s a full 35 per cent less than they require.