loanDepot, one of the emerging lenders in the nonbank mortgage and non-mortgage home loan space, recently surveyed American homeowners.
And although consumers did reduce their total amount of non-mortgage debt very slightly in 2009, in the two years since, that number has risen again.
Of the £19.7bn increase in non-mortgage borrowing in 2014, nearly half of it, amounting to £9.1bn, came from student borrowing.
Across the UK, fewer individuals are weighed down by non-mortgage debts than in 2005 after seven years of consolidation and repayment.
New issuance is frozen.Trouble is also brewing for securities tied to non-mortgage consumer assets, such as credit-card debt, car loans and student loans, which make up a good slice of the asset-backed market (see chart 3).
This increase would leave the average UK household with non-mortgage borrowing of close to £10,000 by the end of 2016, taking consumers into uncharted territory in terms of borrowing levels, the report said.
Personal lending has also been profitable, not least for Bank of Scotland, which has increased its share of the non-mortgage lending market, from just over 1% to 7% in the past five years.
Total outstanding non-mortgage borrowing grew by nearly £20bn or 9% in 2014, to reach £239bn, marking the fastest rate of growth in a decade, according to the report from PwC, Precious Plastic: How Britons Fell Back in Love With Borrowing.
Even in 2013, only 11% of their revenue originated from non-mortgage products.
Moreover, the Guggenheim's endowment is outweighed by its $46 million of non-mortgage debt.
He said about 85% of Ambacs portfolio is non-mortgage related.
