Personal Debt in the UK

(2005-11-25) The author is a business writer specialising in fi

Personal debt in the UK reached its all time high in June 2005 and touched pound 1.1 trillion. According to the Bank of England, the total debt is 150% of the annualized aggregate post-tax income.



Personal debt in the UK reached its all time high in June 2005 and touched pound 1.1 trillion. According to the Bank of England, the total debt is 150% of the annualized aggregate post-tax income.

It is being observed that the Britons are finding it very difficult to repay their debts. Actions entered by lenders, the first stage of repossession, rose 55% over the last one year. A research shows that over 558,000 pensioners are still repaying their mortgages.

The home loan market is also showing a growth. In September 2005, the total amount of mortgage loans given to home buyers reached its highest level since July 2004. The average house price for the first time buyers in the UK has also increased. Because of this, many first time buyers have had to borrow money to afford a deposit on a home.

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