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oh dear: Mortgages debt tops £1 trillion

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    oh dear: Mortgages debt tops £1 trillion

    Mortgages debt tops £1 trillion

    Mortgage debt has gone through the £1 trillion level, according to figures from the Bank of England.

    An extra £9.3bn was borrowed to buy homes in May, increasing outstanding mortgage debt to £1.007 trillion.

    The value of unmortgaged property is much higher at about £3.6 trillion.

    People have a further £192bn outstanding on credit cards and other loans, so total personal debt now amounts to £1.199 trillion.

    It was in 2004 that all personal debt first went through the £1 trillion level.

    But the continued buoyancy of the property market and the steady rise in house prices has driven up the amount of debt due to mortgages alone.

    More home ownership

    According to the latest housing survey from the Nationwide building society, the average house now costs nearly £166,000 with mortgage repayments absorbing 42% of average take home pay.

    The Council of Mortgage Lenders (CML) pointed out that the figure for outstanding debt has also been pushed higher by the continuing spread of home ownership, which has gone up from 60% to 70% of the population during the past twenty years.

    CML spokesman Bernard Clarke said: "The number of £1 trillion itself, while a huge sum, does not have any great significance for policy makers or anyone else.

    "Over time, owner-occupation is a source of wealth and independence for the overwhelming majority."

    The CML believes home ownership has not reached any natural limit and expects both home ownership and mortgage borrowing to continue expanding.

    Mortgage debt has also been boosted by the enthusiasm of home owners for borrowing against the increased value of their homes, known as mortgage equity withdrawal.

    More than £200bn has been borrowed this way since the start of the decade.

    #2
    Still renting then Alexei

    Mwahahahaha
    Why not?

    Comment


      #3


      Soon my humble house will be worth more than the entire GDP of a small country.

      Comment


        #4
        Pruffonomics

        Rule 1

        Debt does not matter.

        As long as you can print more money.

        Comment


          #5
          Originally posted by AlfredJPruffock
          Pruffonomics

          Rule 1

          Debt does not matter.

          As long as you can print more money.
          Does that not cause inflation?...which erodes your debt in real terms
          How fortunate for governments that the people they administer don't think

          Comment


            #6
            I refuse to buy anymore houses on the basis that doing so only add to Browns coffers...

            HTH
            How fortunate for governments that the people they administer don't think

            Comment


              #7
              Originally posted by Troll
              Does that not cause inflation?...which erodes your debt in real terms
              Printing more money produces prosperity, inflation does not matter.

              Comment


                #8
                Originally posted by AlfredJPruffock
                Printing more money produces prosperity, inflation does not matter.
                Worked for Mugabe.

                Comment


                  #9
                  Originally posted by Pondlife
                  Worked for Mugabe.
                  And the Bush administration too.

                  But then again they print the petro dollars.

                  Comment


                    #10
                    Does anybody remember

                    Originally posted by Pondlife
                    Worked for Mugabe.
                    Harold Wilson?
                    Why not?

                    Comment

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