Homeowners accelerated the rate at which they are paying down their mortgages during the second quarter, Bank of England figures showed yesterday. Borrowers reduced their outstanding mortgage debt by £6.19bn during the three months to the end of June – the ninth consecutive quarter to have seen a net injection of equity.
But this could prove to be bad news for the economy. The figures show that households spent the equivalent of 2.5 per cent of their post-tax income on reducing their mortgages. Economists gave warning that this is likely to weigh on consumer spending.Reuse content