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Credit Action Personal Debt Predicted To Reach

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If this prediction materialises then it looks as if spending on a grand scale will continue.

It took 600 years of the Banking System for personal debt to reach £600 billion circa 1997 so in 18 years it would have trebled.

Each months billions must be paid in repayments and interest netting the bank £100 billion (estimated) in interest alone in 2010.

The Office for Budget Responsibility (OBR) predicts that household debt will be £1,823bn by end 2015 which is a growth of £159m a day. This would take the average household debt to £72,341 per household.

UK banks and building societies wrote off £10.9bn of loans to individuals in the last 12 months to end Q2 2010. In Q2 2010 they wrote off £3.47bn (£2.14bn of that was credit card debt). This amounts to a write-off of £38.06m a day.

Total UK personal debt at the end of July 2010 stood at £1,456bn. The twelve-month growth remained at 0.8%. Individuals owe more than what the whole country produces in a year.


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Housing First Time Buyers (FTB) & Buy to Let

The average house price in the UK in June 2010 for first time buyers now stands at £156,103 which is an annual increase of 10.3%.

As at the end of June, there were 1.26 million buy-to-let mortgages outstanding, worth a total of £149 bn. By value, buy-to-let mortgages accounted for 12% of all mortgages, the highest proportion since records began.

There were 52,200 loans (worth £6.2 billion) to first-time buyers from April to June, up from 43,400 (worth £5 billion) from January to March, according to data from the Council of Mortgage Lenders.

The typical first-time buyer deposit in June was 24% (£39,067). The average first-time buyer borrowed 3.28 times their income and the average first-time buyer loan was £123,711.

The lettings market remains buoyant, as increased tenant demand and a shortage of properties pushes rents higher, according to the latest RICS Residential Lettings Survey.

A fifth of private-residential landlords (21%) have had tenants in rent arrears over the last three months, according to research published by the National Landlords Association (NLA). The average amount of outstanding rent arrears is £799.

The dearth in available rental properties is worsening, according to research from the Association of Residential Lettings Agents (ARLA). 70% of ARLA

I found this quite interesting.

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Well, if you haven't saved up £40K, at 40 for your first house, you're a loooser that still catches the bus and lives in a bedsit playing with your trainset.

C'mon you all have £40K saved by 28?


Edited by Money Spinner
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  • 417 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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