UK Borrowers Repay Debt at Record Pace

The latest figures released by the Bank of England suggest that UK borrowers are paying out more debt than it was taken in new loans. As such, the outstanding mortgage debt has been reduced by £6.2 billion in the second quarter of this year.

The financial organisation claims that this has been the 9th consecutive quarter, where UK consumers were repaying more than they borrowed. In the opinion of experts at the Bank of England, this trend can easily be explained by the record low mortgage interest rates, which allow for more quick repayment of debt.

For example, UK homeowners managed to repay £44.2 billion in mortgage debt since 2008 alone.

Commenting on the Bank of England's statistics, Mr. Arhcer of IHS Global Insight said that low savings rates in the UK make it much more financially smart for people to reduce their mortgages than to put money in banks.

However, in the opinion of Mr. David Smith of Carter Jonas, UK consumers are contradicting the recommendations of Mr. Bean of the Bank of England to limit the amount they save.