Total mortgage borrowing in the UK will pass the GBP1 trillion mark early next month, according to an article published by the UK's Council of Mortgage Lenders.
Despite growing rapidly in recent years, borrowing has been dwarfed by the amount of unmortgaged property wealth held by UK home-owners, which currently stands at GBP3.6 trillion. Housing equity is the largest component of total wealth held by people living in the UK.
Mortgage lending has helped fund a dramatic expansion of home-ownership, from 60% to 70% of the population during the last 20 years. But with 80% of people wanting to be home-owners, there is still a gap between those who own and those who would like to. The government has recognized this, stating that it is keen to help another million people become owner-occupiers by 2010 and to expand home-ownership to 75% of the population in the longer term.
Commenting on the growth of the mortgage market, the CML’s director general Michael Coogan said: The GBP1 trillion threshold is clearly a landmark but it does not have any particular significance for policy-makers or others. Although it is a milestone, it will perhaps soon be forgotten as home-ownership and mortgage lending continue to grow further.
Over time, owner-occupation has the potential to create wealth and independence for people, and we will continue to work for the expansion of sustainable home-ownership.