First Time Buyers Borrow Less

Throughout last year many first time borrowers found themselves unable to afford to get on the property ladder - however, due to the housing market showing signs of slowing down, owning a property in 2008 is becoming more realistic for many.

The momentum in rising house prices in 2007 meant that borrowers found it increasingly difficult to afford a property, with first time buyers who did arrange funding having to borrow a record breaking 3.39 times their income. However, according to research from the Council of Mortgage Lenders, in November this figured dropped to 3.33 - resulting from falling property growth due to the impact of higher interest rates.

It is expected that the rise in property prices will slow down even more in the upcoming year, with many experts predicting them to be flat.