Young homebuyers 'willing to borrow big'

Significant numbers of young people hoping to get on the property ladder are willing to borrow large amounts and run the risk of repayment problems in order to get a mortgage, according to research.

A survey by LV= found that 15 per cent of people aged 35 or under would be prepared to borrow more than four times their salary for a mortgage.

Nearly a third (30 per cent) of these people said they would be willing to forego financial protection in order to get the largest mortgage they could afford.

Across the UK as a whole, 87 per cent of people said they would restrict their mortgage borrowing to four times their salary and 58 per cent claimed they would not borrow more than three times their income.

Nigel Snell, communications director at LV=, said: "Home-owning has long been a national passion and one which continues to cascade down the generations, but what concerns us is just how many younger buyers are prepared to stretch themselves well beyond traditional lending limits."

Adults in London and the south-east appear to be the most fearless when it comes to getting a mortgage, with seven per cent prepared to borrow six times their salary or more in order to get on the property ladder.

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