CLOSE to four million resentful renters have been locked out of buying a house due to spiralling mortgage costs, a report reveals.
Tough new rules for home buying loans came in after the financial crash in 2008 to stop defaults.
The average deposit paid by first time buyers has tripled from 5% to 15%
A report by the Centre for Policy Studies (CPS) has found stringent bank stress tests on potential buyers mean they need to prove they can afford to pay an average of 1,075 a month in interest in case rates go up.
Thats while the average monthly mortgage payment is just 633.
At the same time, the average deposit paid by first-time buyers has tripled, from five per cent to 15 per cent.
Together, 3.6 million people under 65, whod have been homeowners before rule changes, have been locked out.
Entrepreneur Graham Edwards, who wrote the CPS report, has called for the Government to stand by new fixed-rate mortgages so that owners know what they will be paying for the next 25 years.
It would also require a house building boom.
The CPSs Robert Colvile said: If we get it right, we can give millions more people the gift of home ownership.
