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C&G warns borrowers to be sensible

Cheltenham & Gloucester is warning homeowners not to get carried away with the current housing boom.


The lender says the housing market is set to remain buoyant but borrowers need to be sensible and not overstretch themselves.


C&G says: &#34Homeowners should still be looking at affordability based on their monthly outgoings and, where possible, building in a contingency to cope with the unexpected.


&#34Lenders and borrowers must each take a responsible approach and not forget that both interest rates and house prices can rise as well as fall.&#34


The warning comes against the backdrop of its recent research which has shown that it is almost 60 per cent cheaper to buy a home today than it was in 1990.


The results of its Affordability Index study reveal borrowers spend only £26.20 per £100 of their take home pay on their mortgage. This compares to £71.30 per £100 in 1990.

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