Buyers could need a £15,000 pay rise to get a mortgage

Buyers will need a 37% pay rise by next year to secure lending on the average home as rising interest rates price out borrowers. Remortgaging will also become unaffordable, experts have warned, leading to forced sales and falls in house prices. Lewis Shaw of Shaw Financial Services, a mortgage broker, said: "A lot of people are going to get absolutely clattered when their fixed-rate mortgages come to an end and there is a big risk that house prices will fall. An awful lot of people will suffer from rate shock." Capital Economics forecast the Bank Rate to hit 3% by 2023. In this case, a typical buyer would need to earn £54,260 to qualify for a mortgage on the average priced £270,000 house

The Daily Telegraph (06/05/2022)