Affordability pressures continued to squeeze first-time buyers in November as income multiples reached their highest ever level - 3.29 times the average first-time buyer household income - according to new data from the Council of Mortgage Lenders.

This was up from 3.27 times in October, and 3.08 times in the same month last year.

The new figures come on the back of last week's decision by the Bank of England to raise interest rates by 0.25% to 5.25% - 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 reveals that the proportion of income used to pay mortgage interest payments hit record levels in November at 17.8% - up from 17.4% in October and 15.8% in November 2005. And the number of first-time buyers that paid stamp duty increased to 56% in November, up from 55% in October and 48% in the same month last year.

Shrug-off

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% to 37,000 loans. This is up from 35,300 loans in October.

CML’s director general Michael Coogan 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.”