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Alliance And Leicester Report 2005/6

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So I was looking for some figures on current and historic levels of lending and came accross this pdf


New research from Alliance & Leicester into mortgage and unsecured debt shows the UK is a long way away from returning to the bad old days of the early 1990s – despite rapid growth in the appetite for borrowing.

Household debt has more than tripled from £337 billion at the end of 1990 to £1,160 billion by the end of 2005. Over this period, mortgage borrowing rose threefold to £967 billion, while unsecured borrowing rose fourfold to £135 billion and balances outstanding on credit cards rose sevenfold to £58 billion.

The average UK household with a mortgage now owes £83,722 in total including the mortgage, compared to £31,238 in 1990.

Key findings

• Total debt has more than tripled since 1990 – but relative to income the cost of borrowing has almost halved.

• The total cost of debt servicing for households with a mortgage stands at 13.8% of income. This is around half the level it was in 1990 when debt servicing consumed 25.7% of household income for those with a mortgage.

• Mortgage arrears are near to an historic low but unsecured borrowing is showing modest signs of strain.

• The base rate would need to hit 8.5% to raise the debt interest burden for mortgage payers to 1990 levels.

However underlying trends demonstrate that, despite this sharp growth, borrowing remains comfortable compared to historic levels – and that the UK is not on the verge of debt meltdown. For example, average mortgage interest payments in 2005 totalled £4,542 per annum, almost the same as in 1990. Meanwhile, household income has doubled.

Epic Fail :rolleyes:

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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