New consumer attitude sees mortgages paid back

07/07/2009

Data from the Bank of England have shown that Britons paid back a net £8.1 billion on their mortgages over January-March.

The figures suggest that people are now looking to pay back their debts in the recession, rather than splurge on yet more credit.

By contrast, over the first three months of 2008 a net withdrawal of £6.7 billion was noted by the Bank.

Low interest rates, with the Bank's own lending rate held at an all-time low of 0.5 per cent, has made many mortgages cheaper and has also helped repayment levels.

Speaking to the Times, Ashley Brown at Moneysprite commented: "The hedonistic days of living the good life and borrowing against the value of your property are a distant memory. Homeowners now recognise that this is the time to batten down the hatches and reduce their debt rather than live on credit."

Figures from charity Credit Action show that the UK's total personal debt stands at £60,000 per household - of which total £50,000 is mortgage debt.

Tags; Housing Debt and Bills, Young Family Finances,

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