Quarter of young people can’t but a home - Is this why so many people go for 100% mortgages.

100% mortgages lenders have been leading the way when it comes to income multiples. Property research specialists Hometrack examined every local authority area across the UK and compared house prices with incomes. 

Researchers also produced figures to show the ratio of house prices to household incomes, based on the cost of a two - or three - bedroom house that young households need. The figures illustrate how much young people need to borrow to enter the housing market. Many 100% mortgages lenders have had income multiples of up to 5.9 times your income with a high credit score.

It found that prices were 5.08 times income in London, 4.84 times income in the South West, and 4.67 in the South East. There were 40 local authority areas where prices were greater than 5.5 times incomes. The least affordable area was Kensington and Chelsea, where prices are 9.23 times income.

Sixteen of the least-affordable areas are located in the South West, with house prices ranging from 6.96 times income in Christchurch to 5.58 times in West Devon. At the other end of the spectrum in 2006 there were just 19 areas where house-price-to-income ratios fell bellow 3 times incomes, you can understand why 100% mortgages lenders offer high income multiples to borrowers with a strong track record of managing their credit. 

There is a market for 100% mortgages and larger income multiples but borrowers must not overstretch them selves.