Mortgage debt at £1trillion

30 June 2006

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According to figurs from the Bank of England, mortgage debt in the UK is now more than £1 trillion, currently standing at £1.007 trillion

That's partly due to an extra £9.3 billion borrowed in May, as lending surged in the biggest gain for two and a half years.

That's not all we owe, either, as the mortgage debts bring the level of personal bebt up to almost £1.199 trillion. This level went through the £1 trillion mark in 2004, and since then, the steady rise in house prices has driven the level of debt up on it's own.

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.

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