Mortgage Debt Approaches £1 trillion In UK
The level of mortgage debt is just short of £1 trillion, it is reported by the Bank of England today.
An additional £8.5bn was borrowed by consumers to buy homes in last month, bringing the level of outstanding amount of mortgage debt to £999.2bn.
However, the value of unmortgaged property is much higher, at £3.6bn.
With individuals owing another £192bn on credit cards, loans and hire purchase agreements, total personal debt now stands at £1.191 trillion.
Outstanding mortgage debt is now forecast to go through the £1 trillion level next month.
But while the figure stands as a landmark, Council of of Mortgage Lenders (CML) chief Michael Coogan believes it does not have any particular significance in terms of policy-making.
"Although it is a milestone, it will perhaps soon be forgotten as home-ownership and mortgage lending continue to grow further," he said recently.
The CML regards the rising figure as an indicator of growing home ownership: up from 60% of the population to 70% in the past two decades.
The CML also argues that there are few signs that home ownership has reached a natural limit. It says it expects continuing growth of both home ownership and mortgage lending in the foreseeable future.
BBC News
http://www.myvesta.org.uk
An additional £8.5bn was borrowed by consumers to buy homes in last month, bringing the level of outstanding amount of mortgage debt to £999.2bn.
However, the value of unmortgaged property is much higher, at £3.6bn.
With individuals owing another £192bn on credit cards, loans and hire purchase agreements, total personal debt now stands at £1.191 trillion.
Outstanding mortgage debt is now forecast to go through the £1 trillion level next month.
But while the figure stands as a landmark, Council of of Mortgage Lenders (CML) chief Michael Coogan believes it does not have any particular significance in terms of policy-making.
"Although it is a milestone, it will perhaps soon be forgotten as home-ownership and mortgage lending continue to grow further," he said recently.
The CML regards the rising figure as an indicator of growing home ownership: up from 60% of the population to 70% in the past two decades.
The CML also argues that there are few signs that home ownership has reached a natural limit. It says it expects continuing growth of both home ownership and mortgage lending in the foreseeable future.
BBC News
http://www.myvesta.org.uk
posted by Your Friends @ Myvesta.org.uk at
5/31/2006 09:26:00 am
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