Borrowers ‘risk everything’ for first property purchase

First-time buyers are running the risk of getting into debt, or even becoming homeless, in an attempt to get on the property ladder, it has been suggested.

According to housing charity Shelter, the number of people struggling with mortgage arrears or having their home repossessed due to difficulties in making secured loan payments has doubled since 2005, reports the Metro.

Chief executive Adam Sampson told the publication: "For first-time buyers, the housing ladder is becoming a housing tightrope."

Research by the charity revealed a rising number of consumers are developing debt problems after signing up to a mortgage worth up to seven times their salary.

Mr Sampson added that buying property is "becoming an ever-more distant dream" as more buyers are stretched to their financial limits.

Earlier this week, Citizens Advice spokesperson Lisa Colclough suggested a rising number of consumers are struggling to make home loan repayments due to rises in council tax and utility bills.

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