Property Ladder: Owners hold equity cushion
Essential news for the first time buyer
New research from the Council of Mortgage Lenders has revealed the average loan-to-value ratio on mortgaged property in the UK is less than 60%.
Nearly half of existing borrowers have outstanding mortgage debts equivalent to less than 70% of the value of their home, while a further quarter have an equity cushion of between 10% and 30%.
This means that borrowers overall hold unmortgaged housing wealth worth around £800bn.