Affordability issues continue to blight first-time buyers (FTBs), according to figures from the Council of Mortgage Lenders (CML).

Income multiples reached their highest ever level in November - 3.29 times the average first-time buyer household income. This was up from 3.27 times in October, and 3.08 times in the same month last year.

The figures come on the back of last week's decision by the Bank of England to raise interest rates by 0.25 per cent to 5.25 per cent - the highest level since May 2001. In November, the average first-time buyer mortgage was £113,877 and the latest increase in interest rates will add an extra £17 to average monthly mortgage payments.

The data also revealed that the proportion of income used to pay mortgage interest payments hit record levels in November at 17.8 per cent - up from 17.4 per cent in October and 15.8 per cent in November 2005. And the number of first-time buyers that paid stamp duty increased to 56 per cent in November, up from 55 per cent in October and 48 per cent in the same month last year.

But, despite affordability constraints growing, the number of first-time buyers managing to get on the property ladder is actually increasing. In November the number of loans to first-time buyers grew by 5 per cent to 37,000 loans. This is up from 35,300 loans in October.

Michael Coogan, director-general at the CML, said:
"Month on month we see affordability constraints becoming more pronounced for first-time buyers, and last week's interest rate rise will increase these pressures. But, first-time buyers are clearly still keen to get on to the property ladder despite the growing financial hurdles, and it is essential that anyone wanting to buy their first home should look carefully at their finances and take a realistic view as to whether they can afford the costs of home-ownership if rates continue to rise."

"First-time buyers should examine the benefits of taking out a fixed-rate deal for payment certainty in the next few years and make sure they are protected against any unforeseen changes in their personal circumstances."