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Brits focusing on repaying their mortgages

January 14, 2009 by admin  
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Recently released figures have indicated that many Brits are now focusing on trying to repay their mortgage debts rather than accruing even more debt. In the third quarter of this year more money was ploughed into the than every before, as Brits tried desperately to pay off as much as they could on their mortgages and tried to avoid getting deeper into debt. The figures were released by the Bank of England and related to mortgage repayments between July and September of this year.

The Bank of England figures showed that between these months around £5.7 billion worth of equity was ploughed back into housing, and this was the highest level since 1970, which is when records began.

In the second quarter of the year homeowners ploughed back around £2 billion back into the equity in their homes, making this the second quarter in a row where households have been putting equity back into their properties. This comes after a ten year house price boom, which saw property prices soar and homeowners extract billions of pounds from the equity in their homes.

Andrew Montlake, partner at independent mortgage broker Cobalt Capita, stated: ‘In this market, it pays to travel light. ‘People are scared stiff of recession and rising unemployment and are now paying off their debts rather than adding to them.’

Property prices have fallen by around 15 percent over the past year already, and many industry groups and officials have predicted that they will carry on falling over the coming year, which could see overall price falls of between 25 and 35 percent before prices start to stabilise again.

Tags: mortgage debts, Economic history, independent mortgage broker, Mortgages, housing market, scared stiff, United States

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