The figures illustrate how people are increasingly having to stretch themselves to get on the ladder in the face of rising interest rates and mortgage costs.
Separate figures show couples are now stretching themselves more than ever before to get on the housing ladder.
Data published by the Financial Conduct Authority show the proportion of “high” loan to income loans – defined as more than three times income for joint borrowers – stood at 39.2pc of all mortgage lending in the second quarter of this year.
This is the highest proportion since at least 2007, and compares to 20pc before the financial crisis.
Bank policymakers are expected to raise interest rates by at least half a percentage point next week, as officials battle to get a grip on rampant inflation.
Andrew Bailey, the Governor, and the other eight members of the Monetary Policy Committee (MPC) were expected to meet this week, but delayed their decision on interest rates following the death of Queen Elizabeth II.
It began raising interest rates in December, and next week’s move is set to take borrowing costs to at least 2.25pc, the highest level since 2008.
Banks and building societies have passed this on to homeowners with variable rate mortgages, and to those who are taking out new fixed-rate loans.
The average five-year fixed rate mortgage taken out by buyers with a 75pc deposit came with an interest rate of 3.6pc last month.
That is more than double the 1.4pc typically charged a year earlier, Bank figures show.
First time buyers with a smaller deposit pay even more. The typical two-year fix for a buyer with a 10pc deposit costs 3.9pc, up from 2.5pc 12 months ago.
The average property sold for £292,118 in July, according to the Office for National Statistics, a record high.
This is up 15.5pc compared with July of 2021, marking a record jump. This is in part because much of the stamp duty holiday offered during the pandemic came to an end in June 2021, briefly pushing prices down again last summer after a frenzy to beat the deadline.
But prices are still up by 12pc compared to last August, and 10pc compared to June 2021, the final month of the stamp duty break, illustrating the scale of the boom in the market even after the tax break was wound down.
