Mortgage borrowing to top £1 trillion
Posted: 28 Apr 2006 10:07:26 GMT
Total mortgage borrowing in the UK is set to rise above £1 trillion in the next few weeks, according to the latest report from the Council of Mortgage Lenders (CML).
The amount of unmortgaged property wealth held by UK homeowners, however, is considerably higher at £3.6 trillion, despite staggering growth in borrowing over the last few years.
It seems that Brits are managing to maintain their reputation as enthusiasts for homeownership, with 70 per cent of the population now in this privileged position.
This has risen from 60 per cent within the last 20 years, but the government plans to expand it to 75 per cent in the longer term.
Significantly, however, 80 per cent of the population want to be homeowners and this discrepancy is fundamentally down to affordability issues.
It is undeniable that the situation has improved and thanks for the ability to advertise houses online, growing numbers are managing to limit the financial burden by purchasing a property privately.
Michael Coogan, CML's director general, has suggested that mortgage lending will continue to soar.
"Over time, owner-occupation has the potential to create wealth and independence for people and we will continue to work for the expansion of sustainable homeownership," he said.