First-time buyers struggling to get on the property ladder are becoming increasingly prepared to take greater financial risks a survey suggests.

With the third interest rate rise in five months looking set to have only a minor impact on slowing rising house prices, significant numbers are considering mortgages based on more than five times their salary.

And home loans spread over more than 25 years to make the monthly payments more manageable are no longer scaring the majority - despite the resulting huge increase in the amount they will have to ultimately pay back.

Only 20% of first-time buyers would shy away from a mortgage which took longer than 25 years to pay off, according to Yorkshire Bank's latest house buyers’ report.  And just two out of five (39%) would rule out a home loan which was five times their income.

Gary Lumby, Yorkshire Bank's head of retail, said: "With the average house price nearing £200,000, this year may feel like the last chance saloon for first-time buyers already finding it hard to buy.”  

“Two rate rises last year did little to slow house prices and it looks unlikely this latest rise will have any significant impact either. Therefore, their fears are the longer they leave it to buy, the harder it will be.”

"To try get onto the property ladder now before prices are totally out of reach, first-timers are taking greater financial risks … unfortunately for some, they feel it is their only option."

Worried parents

Parents with young children are so concerned that their offspring will still be living with them well into their thirties, they are starting funds now to try and help them buy their first home in years to come.

One in four (23%) think that should prices continue to rise then their children will be well into their thirties before they can afford to move out and buy their own property. 

So worried are one in seven parents, they have even started a home fund to try and help their children buy when they are older.