The aggregate loan-to-value (LTV) ration on mortgaged property in the UK is less than 60 per cent, new research has shown.

New figures from the Council of Mortgage Lenders revealed most individual borrowers continue to have a substantial cushion of equity in their homes, with almost half of them having outstanding mortgage debts that calculate at less than 70 per cent of the value of their abode.

Moreover, a further quarter revealed they have a bumper of between ten and 30 per cent of their dwelling's worth.

Paul Smee, director general at CML - which is a not-for-profit organisation - said: "Negative equity is much less common than in the 1990s and in the current cycle low interest rates and a relatively stable employment market are providing more options for borrowers."

The findings show that borrowers in the UK hold a combined unmortgaged housing wealth that is worth in the region of £800 billion.