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Mortgage debt falls for 10th quarter in a row | Mortgage debt falls for 10th quarter in a row |
(1 day later) | |
Mortgage holders are continuing to pay down their loans, according to the Bank of England's latest quarterly figures. | Mortgage holders are continuing to pay down their loans, according to the Bank of England's latest quarterly figures. |
Figures for the third quarter of the year show borrowers cut their collective debt by £6.1bn. | Figures for the third quarter of the year show borrowers cut their collective debt by £6.1bn. |
It is the 10th quarter in a row that homeowners have put more money into their home than they took out. | It is the 10th quarter in a row that homeowners have put more money into their home than they took out. |
Separately, the Halifax released a report showing first-time buyers would need an average deposit of £29,000 to buy a property. | Separately, the Halifax released a report showing first-time buyers would need an average deposit of £29,000 to buy a property. |
But the mortgage lender added that the proportion of disposable income needed for mortgage payments was now the lowest for 12 years, at 27%. | But the mortgage lender added that the proportion of disposable income needed for mortgage payments was now the lowest for 12 years, at 27%. |
Collectively, those with mortgages have been reducing the amount outstanding since the second quarter of 2008 and have paid in £49.7bn since then. | Collectively, those with mortgages have been reducing the amount outstanding since the second quarter of 2008 and have paid in £49.7bn since then. |
'Serious concerns' | 'Serious concerns' |
Howard Archer, chief UK and European economist at IHS Global Insight, said: "There is an ongoing desire and perceived need of many people to improve their personal balance sheets, given high debt levels and serious concerns and uncertainties over the economic situation. | Howard Archer, chief UK and European economist at IHS Global Insight, said: "There is an ongoing desire and perceived need of many people to improve their personal balance sheets, given high debt levels and serious concerns and uncertainties over the economic situation. |
"Extremely low savings interest rates have made it much more attractive for many people to use any spare funds that they have to reduce their mortgages." | "Extremely low savings interest rates have made it much more attractive for many people to use any spare funds that they have to reduce their mortgages." |
The recent trend among homeowners to pay down their mortgages contrasts with their behaviour during the housing boom, when they unlocked a record £17.1bn during the last quarter of 2003. | The recent trend among homeowners to pay down their mortgages contrasts with their behaviour during the housing boom, when they unlocked a record £17.1bn during the last quarter of 2003. |
Recent figures from the Council of Mortgage Lenders (CML) showed mortgage lending fell 5% in November compared with the previous month and was down 10% on a year ago, lenders say. | Recent figures from the Council of Mortgage Lenders (CML) showed mortgage lending fell 5% in November compared with the previous month and was down 10% on a year ago, lenders say. |
The uncertain housing market means it is more difficult not only to get a mortgage, but to increase the size of an existing one. | The uncertain housing market means it is more difficult not only to get a mortgage, but to increase the size of an existing one. |
The CML said mortgage lending remained weak owing to a lack of interest from buyers and rationing of home loans from lenders. | The CML said mortgage lending remained weak owing to a lack of interest from buyers and rationing of home loans from lenders. |
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