Strong financial position for homeowners

Posted: 11 Apr 2008 11:38:03 GMT

Homeowners in the UK are in a strong position financially because of the amount of money locked up in unmortgaged housing wealth.

Homeowners in the UK are in a strong position financially because of the amount of money locked up in unmortgaged housing wealth.

That is according to the Council of Mortgage Lenders (CML), which said that this figure is far greater than the combined outstanding mortgage balance.

Unmortgaged housing wealth is the money tied into properties where the mortgage has already been paid.

According to the CML, the UK-wide figure stands at £2.5 trillion, while outstanding mortgage debt is just £1.1 trillion.

"Data on the aggregate balance sheet position of households shows that the finances of homeowners are strong and healthy, even among those borrowing with a mortgage," read a CML article on the issue.

"We recognise that the financial position for individual households may vary.

"Overall, however, the strong reserves of wealth built up by home-owning households will underpin the finances of the vast majority in a variety of different circumstances," it continued.

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