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03 July 2006
Britain's collective mortgage debt has hit £1,006,796 million, breaking through the £1 trillion barrier.
Outstanding mortgage debt soared by £9.3 million in May, the biggest monthly gain since July 2004, according to Bank of England figures.
However, many experts believe that although mortgage debt has been pushed up by high house prices, the sum is nothing to worry about as Britons are not borrowing beyond their means.
"While £1 trillion in mortgage debt is a huge sum, when you consider the fact that there is an unmortgaged property wealth of around £3.6 trillion, this means that the UK's loan-to-value is a mere 22 per cent, which is healthy to say the least," said Drew Wotherspoon of mortgage experts John Charcol.
Mortgage approvals rose to 117,000 in May, a slight increase on previous months, suggesting renewed housing market activity.
House prices continued to rise in June, on the back of economic growth, increasing employment figures and steady demand, Nationwide's house price index showed.
"Despite previous fears of a crash in house prices, the market has picked itself up and the appetite for home ownership among consumers is firmly back on track," added Mr Wotherspoon.
If you are worried about high levels of mortgage debt, order your credit report now and find out where you stand financially.
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