£1 trillion: our home loan debt

BRITAIN'S mortgage debt will break through the £1 trillion barrier for the first time next year, according to the Council For Mortgage Lenders.

The staggering record of more than £1,000bn will mean the stock of outstanding mortgages will almost equal an entire year's gross domestic product - the income produced by Britain's businesses, Government and individuals.

It would put the average debt per head of population at £16,700, including the elderly and children.

With alarm bells already ringing over the ever-increasing debt load faced by millions of households, the landmark is certain to trigger further accusations of irresponsible lending.

It will mean that mortgage debt as a proportion of GDP will have almost doubled since 2000 and risen nearly five times since the mid-Sixties.

The CML fears soaring debt is feeding a price spiral that is pushing home ownership out of the reach of younger people.

It warned: 'Housing affordability worsened in 2004. Across the UK there was a decline in the number of first-time buyers.'

Household debt, including mortgages, credit cards, overdrafts and consumer loans, topped the £1 trillion level last July.