NORTH-East house buyers are paying nearly a third more on mortgages than at this time last year, research revealed yesterday.

Despite the housing market showing signs of slowing down, prices remain high and this, combined with rising interest rates, has led to a shortage of affordable properties.

The research, by the Cheltenham and Gloucester building society, also showed North-East consumers were spending a much higher proportion of their earnings on mortgages.

First-time buyers faced spending 37 per cent more of their take-home pay on mortgages this year than last.

However, mortgage lending slowed during the past month, contributing to the growing evidence that the house price boom is over.

The Council of Mortgage Lenders said a total of £25bn was advanced during the month, 13 per cent less than July's record £28.9bn.

The British Bankers' Association also reported a slowdown in lending, with borrowing through home loans rising by only £4.39bn last month, the lowest figure since June 2002.