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02 June 2006
Britons are more concerned about repaying credit card and other unsecured borrowing debts than they are about repaying their mortgage, shows new research.
Total personal loan debt stood at £135.9 billion at the end of 2005, but fell by £360 million in the first four months of this year, figures from Alliance & Leicester revealed.
Credit card debts were also being repaid, with credit card borrowing falling by £900 million in the first four months of 2006.
However, mortgage debt in the UK stood at £999.2 billion at the end of April, rising by around £9 billion per month, indicating that it now stands at over £1 trillion, said Alliance & Leicester.
Despite this record level of mortgage borrowing though, mortgages still remain at their most affordable level since 2004, when taking interest rates and household incomes into account.
"While household incomes have grown modestly, interest rates are lower than a year ago. Overall the cost of servicing a mortgage has therefore fallen slightly, despite gently rising house prices," said managing director of Alliance & Leicester retail banking, Chris Rhodes.
The data also revealed that the number of homeowners planning to move house before next winter had doubled since January.
If you are thinking of applying for a mortgage, you will be credit checked. Order your credit file now and see what lenders see.
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