U.K. Households Step Up Debt Repayments

Spiv_2

U.K. Households Step Up Debt Repayments as Recession Deepens

Britons increased the equity in their homes at the fastest pace on record as the recession encouraged households to pay down existing mortgages rather than take out new ones. Individuals injected a net 8 billion pounds ($11.5 billion) into housing equity in the three months through December, the most since records began in 1970, the Bank of England said in London today.



http://www.bloomberg.com/apps/news?pid=20601102&sid=aIuqp9eC3FR8&refer=uk

Really2

Spiv wrote: »

U.K. Households Step Up Debt Repayments as Recession Deepens

Britons increased the equity in their homes at the fastest pace on record as the recession encouraged households to pay down existing mortgages rather than take out new ones. Individuals injected a net 8 billion pounds ($11.5 billion) into housing equity in the three months through December, the most since records began in 1970, the Bank of England said in London today.



http://www.bloomberg.com/apps/news?pid=20601102&sid=aIuqp9eC3FR8&refer=uk

Already posted but interesting non the less.
http://forums.moneysavingexpert.com/showthread.html?t=1599349

Spiv_2

Ah - I see nobody commented on it. Now I wonder why that might be?

No comments on this one here either

http://forums.moneysavingexpert.com/showthread.html?t=1599635

U.K. Gilt Sale Succeeds

I knew there wouldn't be! It doesn't fit this boards agenda LOL. They cheer bad news only!

Really2

Could good news actualy be bad.:D

Spiv_2

Really2 wrote: »

Could good news actualy be bad.:D

Maybe always better to be in possession of the full facts, don't you think?;)

ad9898_3

Spiv wrote: »

Britons increased the equity in their homes at the fastest pace on record

Although I'm sure Britons are paying down debt, as we can see that little is being spent on the high street, however I would argue that they aren't increasing the equity in their homes at all, as the average house is losing 2k per month, unless they are overpaying by this much (unlikely), the gap will be widening.

Really2

ad9898 wrote: »

Although I'm sure Britons are paying down debt, as we can see that little is being spent on the high street,

Well us home owners have been propping the economy for years.

Cant every one else support the high street while we pay our debts off for once.:D

BenL

The only people interested in spending and taking on debt are borrowing against 10 Downing St.

Most people are battening down the hatches and paying off debts, keeping ehad down at work.

No need to buy that new car, tv, ipod, multiple holiday at the moment.

Everyone has enough consumer gadgets and gizmos for now.

Waiting for the deflation spiral to start properly.

Savings accounts are paying less interest, spend the money? No thanks I'll put more away to keep it topped up.

Pension ruined? Save some more money elsewhere for the future.

Want to go to the high st? Got to get fuel though 1st and then the spending money is gone but at least I can drive to work the week after.

LauraW10

BenL wrote: »

Waiting for the deflation spiral to start properly.

I've started to notice serious drops in prices in my supermarket. Chicken is a fifth less than it was just a few weeks ago and also cereal has fallen a lot too..

I don't know where people are finding inflation, I'm not finding it anywhere

carolt

Spiv wrote: »

U.K. Households Step Up Debt Repayments as Recession Deepens

Britons increased the equity in their homes at the fastest pace on record as the recession encouraged households to pay down existing mortgages rather than take out new ones. Individuals injected a net 8 billion pounds ($11.5 billion) into housing equity in the three months through December, the most since records began in 1970, the Bank of England said in London today.



http://www.bloomberg.com/apps/news?pid=20601102&sid=aIuqp9eC3FR8&refer=uk

How astonishing.

Interest rates are at their lowest for several hundred years, so people's mortgage interest payments are going down massively - and - at the same time, their house prices are shooting down, thus requiring them to pay more capital off their mortgages to avoid neg equity/stay within their desired LTV.

Isn't it amazing they would choose to put some of that money they've saved on their mortgages towards paying off the capital? :rolleyes:

It's not rocket science, is it.

bluey890

when repayment tracker interest ratse go down, monthly captial payment automatically goes up. rocket science it isnt.