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Guest Charlie The Tramp

Mortgages Debt Alone Will Hit

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No problem, I missed this one  :( 

1 Trillion mortgage debt

'Household debt, including mortgages, credit cards, overdrafts and consumer loans, topped the £1 trillion level last July.'

I'm a little confused about this

Does this mean that total household debt on all types of debt was £1trillion last July but by next year mortgages alone will account for £1trillion of debt. :huh:

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Guest Charlie The Tramp
but by next year mortgages alone will account for £1trillion of debt.  :huh:

That`s how I read it. <_<

I take it this only includes the original debt and does not include interest payments?

I stand to be corrected but believe the debt only refers to the amount of the actual loans.

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Mortgage debt for house purchases and remortgaging accounts for close to 80% of the trillion pound borrowings.

ref. BBC, July 2004

Using this as a guide, overall debt would need to reach 1.25 trillion pounds before mortgage debt reached a trillion. Overall now at 1.1.

It doesnt matter to me either way... I do not have possession of these UK plc share certificates. The writing is on the wall.

Damn, its a big number!

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Guest Charlie The Tramp
But in order for the explosion in personal debt to have happened, lenders had to come to the party too.

"From the mid 1990s onwards American lenders flooded into the UK market."

"They stole a march on domestic lenders by using aggressive marketing techniques and more sophisticated credit scoring to enable them to undertake a looser lending policy. Crucially they had very deep pockets." Mr Rice said.

Seeing their market share vanish at an alarming rate, domestic lenders countered by making it much easier and quicker for people to get credit.

Boy what a massive party it has been, some nasty hangovers in the morning. :(

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ref. BBC, July 2004

Using this as a guide, overall debt would need to reach 1.25 trillion pounds before mortgage debt reached a trillion. Overall now at 1.1.

It doesnt matter to me either way... I do not have possession of these UK plc share certificates. The writing is on the wall.

Damn, its a big number!

FTB - From your BBC July 04 link, "When I bought my first car in the 1950s I had to have the credit agreement counter-signed by my father and husband. As a woman, I couldn't be trusted to borrow on my own," recalls Dr Dorothy Rowe, psychologist and author of 'The real meaning of money'.

Thirty years ago, during a boom, my wife and I had saved £650 as a deposit for a house. Prices were inflating daily out of our grasp and so we ended up at an auction. Put up our naive hand as the first bid on the last house in the auction. Didn't know where or what it was. Wishing for the next hand to appear and relieve us of our foolishness was not rewarded.Turned out to be the final bid also. £6,500. We just had the10% deposit. What we didn't know was that no building society would mortgage property built before 1930. (Banks did the loans then) Anyway fortunately, to prop up the structurally detriorating UK housing stock, local authorities were obliged to provide funds where no mortgate was approved. And that's what happened.

My point is that the tightness of lending criteria has slackened to nearly non existant and, although not wanting to return to the above situations, where are we going next and how do we get there?

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I got these figures for you from credit action org. Should sort out any confusion.

Total secured lending on homes in July 2005 was £923.8bn.

Total consumer credit lending to individuals in July 2005 was £189.8bn.

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Guest Charlie The Tramp
Total secured lending on homes in July 2005 was £923.8bn.

It would be interesting to know what percentage of this debt is remortgaging.

Do the CML keep seperate data on the total amount borrowed for this group?

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  • 302 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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