Mortgages most expensive for 15 years

In April mortgage repayments hit a 15-year high, figures from the Council of Mortgage Lenders (CML) show.

And things are worse still for first-time buyers, who are now spending 18.7 per cent of their income on mortgage interest payments alone. This is the largest percentage since 1992.

"Month on month we see affordability constraints for first-time buyers worsening," said CML director general Michael Coogan.

"And with the impact of May's interest rate rise still to be felt, many borrowers face higher costs in the coming months."

And it is not just first-time buyers paying more, with the cost of an interest-only mortgage for a home in April accounting for 16.3 per cent of their incomes - also the highest level since 1992.

Britons are responding to the higher costs of interest-only mortgages and repayment mortgages by taking out fixed-rate loans.

Some 88 per cent of first-time buyers opted for a fixed-rate loan in April, down only slightly from the record 89 per cent recorded in March. Home movers are also going for fixed-rate mortgages, with 72 per cent choosing a fixed-rate deal in the month.

But while people taking out mortgages are going for fixed-rate deals, there is concern for those with deals expiring.

"The vast majority of borrowers will be able to absorb higher mortgage payments," said Mr Coogan.

"But with two million fixed-rate loans coming to an end over the next year and a half, many borrowers should anticipate that their mortgage costs are likely to rise and should be planning ahead."

Interest rates have risen four times - from 4.5 per cent to 5.5 per cent - in the last two years.