Thursday, Jun 29, 2006

Mortgage Debt Now Over A Trillion Pounds

BBC: Mortgages debt tops 1 trillion

Good news! Mortgage debt is now over a trillion pounds! Which must mean we are all better off! That's what rising house prices mean doesn't it?

Posted by Peter Argot @ 12:20 PM (554 views)
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2 Comments

1. denzil said...

I just had a quick read of this and the Nationwide state that "the average house now costs nearly 166,000 with mortgage repayments absorbing 42% of average take home pay."

I would say that the 42% was probably about right at least in terms of stats!

Now when I read the guardian article further down the blog http://money.guardian.co.uk/news_/story/0,,1808725,00.html?gusrc=ticker-103704
I read this:
"The Council of Mortgage Lenders (CML) said that the average person taking out a mortgage during 2005 spent just 15.3% of their income on interest payments, just over half the 26.5% of their pay people needed for payments in 1990."

Now I know there are differences between the two statements and in a way the Guardian excerpt is ambiguous because quoting the percentage of interest paid now and in 1990 is very inaccurate and in many ways irrelevent but surely the CML quote is out of whack with figures produced by the Nationwide.

Thursday, June 29, 2006 03:23PM Report Comment
 

2. Retiredbanker said...

denzil

Perhaps 15.3% interest payments plus capital repayment of the mortgage loan(s) = 42% ?

So much contradictory information from so many different sources; no wonder people mistrust statistics.

Thursday, June 29, 2006 05:54PM Report Comment
 

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