Homeowners in good position

UK homeowners are in a strong position financially, according to the Council of Mortgage Lenders (CML).

The organisation has revealed that the UK's combined outstanding mortgage balance stands at £1.1 trillion.

However, this debt figure is dwarfed by the £2.5 trillion which is tied up in unmortgaged housing wealth.

Unmortgaged housing wealth is the equity in properties where the mortgage has already been paid off.

It means that as a nation we are £2.4 trillion to the good, although the CML accepts that individual circumstances are different.

"Data on the aggregate balance sheet position of households shows that the finances of homeowners are strong and healthy, even among those borrowing with a mortgage," read a CML article.

"We recognise that the financial position for individual households may vary. Overall, however, the strong reserves of wealth built up by home-owning households will underpin the finances of the vast majority in a variety of different circumstances," it continued.

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