People on smaller salaries getting on property ladder: MAB

People on smaller salaries getting on property ladder: MAB

The average primary salary of a would-be borrower has fallen to its lowest point in more than two years, mortgage data has shown.

Figures from the National Mortgage Index, managed by the Mortgage Advice Bureau, suggested that improved mortgage affordability is helping those with lower incomes to climb the property ladder.

According to the index, the typical primary income for a borrower in March was £38,159. This is 2.9 per cent lower than in February and the lowest average salary seen by the index since November 2012 (£36,807).

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This fall in average salaries came as the typical deposit put forward for house purchase also hit a 12-month low.

The average deposit in March was £68,877, down by 3.2 per cent compared to the previous month’s £71,169, and the lowest figure recorded since March 2014. This comes despite a 0.4 per cent increase in average UK house prices in the same month.

Monthly comparison of typical salary, deposit and LTV for purchase applicants.


March 2015

February 2015

% change


Average primary salary




Average deposit





Average LTV

Source: MAB 





Adviser view

Brian Brotherton, principal of Essex-based The Partnership, said: “I am finding the opposite to what MAB data suggests. We have had two 95 per cent LTV mortgages declined over the past few days. I think first-time buyers are struggling to get on the ladder unless they’ve got an absolutely perfect criteria.

“They have to meet affordablity criteria, but then the lender may not lend on multiples above four times the income. It seems to be a double whammy. Also, some young couples with small children find it hard to be first-time buyers – we have found that lenders do take things such as family credit out of the equation and ignore it, but it is still a source of income.”