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Banks are increasingly shunning first-time buyers in expensive areas and instead targeting mortgages at more wealthy customers. New mortgage caps were introduced by the Financial Conduct Authority (FCA) in 2014 meaning that only 15% of a lender’s customers could borrow more than 4.5 times salary. However, the rules have inadvertently punished first-time buyers and house hunters on middle-incomes. These customers typically need to borrow greater sums of money in order to afford a property. However, a report from the FCA found that these are the customers who have seen their mortgage choice limited. Since the rules were implemented, there has seen a marked decrease in the number of loans being given to struggling young borrowers. For example, the study found that the proportion of five times income loans to first-time buyers had fallen from 40% to 32% since the rules were implemented. Instead, banks have concentrated on attracting high earners, with the salary needed to take out high loan-to-income loans growing from £41,951 to £48,953. This is well above the average salary of £30,420.