The sum that is owed by property owners in the UK has soared to more than £1 trillion, according to a study released recently.
According to the Office for National Statistics (ONS), personal debts have continued to increase, with property debt increasing from £980 billion between 2008 and 2010. Prior to this, the figure stood at £960 billion, with over 10% of families claiming that the debt was a ‘heavy burden’, although the figure has dropped slightly in comparison to the 11.3% who were burdened in period 2008 to 2010.
The study revealed that of those people who owed between 60% and 80% of the property value, 20% described the mortgage as a ‘heavy burden’, while 40% said it was ‘somewhat of a burden’.
Unsurprisingly, the area with the largest mortgages is London, where the highest house prices are. The average mortgage debt in London during the period 2010 to 2012 was £131,000, while the average mortgage debt during the same period in Wales was less than half, at £56,000.
The study indicated that the average age of a first time buyer was now over 30 years old, with the biggest mortgages belonging to those in their late twenties and early thirties, showing how difficult it is to get on the property ladder.
Obtaining the most suitable mortgage can make a huge difference to a first time buyer. Mortgage advisers who study with a CeMAP Training Company are able to help clients make the right choices for their circumstances.