A report released by the Bank of England has shown that despite the credit crunch, Britons owe at least £1bn in unsecured loans every month, and most of those who take out loans are homeowners.

The stats released today show that homeowners actually make up the bulk of borrowers, totalling 65 per cent. This can be explained by those with homes often using them for equity in order to finance another venture. This false sense of security has meant that loan repayment figures have reached an all time high.

A leading industry figure stated; "There are signs of increasing strain in the homeowner segment, highlighted by... the fact that almost 40 per cent of IVA proposals are now coming from people who own property. Historically, over 50 per cent of struggling homeowners would refinance or remortgage themselves out of trouble, but this option is less readily available today."