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Homeowners are overstretched

  • 03/12/2002
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Homeowners with mortgages of four or five times their salary have overstretched themselves, accordin...

Homeowners with mortgages of four or five times their salary have overstretched themselves, according to mortgage valuers Allied Surveyors.

Robert Bryant Pearson, chief executive of Allied, pointed out that low inflation means that high mortgages now will still feel that way in coming years. ‘For the last 40 years, purchasers have over extended themselves but have always been saved by inflation,’ he said. However, with mortgage repayments averaging 35% of the average pay packet at current inflation rates, today’s purchasers will be lucky if their mortgage payments cost less than 27% in 2012.


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