Debt management reflected in household mortgage repayments
Debt management reflected in household mortgage repayments
- Wednesday, 30 December 2009Debt management seems to be at the top of consumers minds, with latest figures showing that homeowners continue to rein in mortgage debt.
UK households reduced their outstanding mortgage debt by £4.9 billion in the third quarter, according to figures from the Bank of England.
It is the sixth successive quarter in which homeowners have repaid more of their mortgage than they borrowed, as people continue to focus on minimising their debts.
Chief UK and European economist with HIS Global Insight Howard Archer said low interest rates on savings have contributed to the trend.
"Housing equity withdrawal has been used significantly to support consumer spending in recent years," said Mr Archer.
"Consequently, the sharp turn-around from substantial withdrawals up to and including the first quarter of 2008 to a net injection of equity over the past six quarters has added to the constraints on consumer spending."
According to recent research from the British Bankers Association, demand for new personal loans was weak and total consumer credit had contracted by 2.2 per cent over the last year.

Recent Debt Management Plan News
56% of Brits have no life insurance which could leave family with debt problems
Wed, 04 May 2011More than half of UK adults currently have no life insurance cover, which could mean their loved ones are left with
debt problems when they die...
Brits thinking about retirement advised to seek debt advice
Tue, 03 May 2011Consumers considering their retirement options have been advised to seek professional advice, as they may end up with
debt problems in the future...
Brits planning to attend a wedding should start saving to avoid debt problems
Thu, 28 Apr 2011Consumers concerned about getting into
credit card debt to pay to attend a wedding may want to use their savings instead...
Couples planning their big day can avoid debt problems by negotiating a cheap wedding
Wed, 27 Apr 2011Couples-to-be worried about needing
debt advice in the future after paying for a wedding can ensure they avoid accruing
debt problems by negotiating a cheap wedding...