First-time buyers are overstretching themselves and not considering how they would pay their mortgage if they lost their regular income, a new report claims.

Almost half of overstretched first-time buyers would only be able to meet their mortgage repayments for six months if they were unable to work, according to figures from Post Office Financial Services.

With many first-time buyers feeling the pressure of high house prices and utility bills, almost half have taken out no income protection to safeguard their mortgage payments.

Head of marketing at the Post Office, Claire Oldstein, said: "First-time buyers tend to overstretch themselves, but need to consider what they would do if they lost their income.

"It's unlikely they will have a big enough rainy day fund to rely on - especially after pulling together a deposit."

Around 21 per cent of first-time buyers surveyed said that they would have to rely on friends and family to help pay the mortgage if they were unable to work, while five per cent said that they thought they would have to sell the house.

Record Mortgage Lending in July - 18th August 2006