Mortgage lending now over £1 trillion

03 July 2006
According to the new Bank of England (BoE) figures released at the end of last week, mortgage lending has now broken through the £1 trillion barrier.

Although analysts have said the figure bears little significance to the wider market, consumers will no doubt be concerned by this astronomical statistic.

Moneysupermarket.com, the price comparison website, says this should not be the case however, as recent Council of Mortgage Lenders' (CML) figures suggest the average wage is now coming more into line with home loan levels.

"It isn't all doom and gloom for homeowners as it would appear that wages have moved in-line with house prices," Louise Cuming, head of mortgages at the online site, confirmed.

"According to figures…the average person taking out a mortgage during 2005 spent just 14.6 per cent of their income on interest payments, compared with the 25.8 per cent of their pay people needed in 1990 – signifying that affordability is better now than 15 years ago."

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