Homeowners repay mortgages at record rate - UK

[dipsydoodle]

Source: Guardian

Britain's nervous homeowners paid down a record £9bn on their mortgages between April and June as they struggled to restore their tattered finances.

Figures released by the Bank of England on Wednesday show that a record £9.1bn was paid back in the second quarter of this year alone – the largest figure ever, amounting to 3.5% of consumers' post-tax income.

During the boom years, by contrast, mortgage equity withdrawal peaked at 5.6% of post-tax income, in late 2006.

When house prices were rising rapidly, mortgage equity withdrawal boosted consumer spending as homeowners extended the mortgages on their existing property and spent the proceeds.

Read more: http://www.guardian.co.uk/money/2011/nov/30/homeowners-repay-mortgages-record