Brits Continue to Repay Mortgage Debt

According to the report revealed by the Bank of England on Monday, July 4th, homeowners in UK continue to repay their mortgage debt.

However, outstanding mortgage debt fell to its lowest annual level in Q1 2011 as borrowers paid £5.8 billion off home loans. This compares to £7.1 billion in Q4 of 2010.

Figures suggest that mortgage borrowers have been paying out their debt for 3 years now. This comes in contrast to pre-crisis times, when most Brits were willing to take loans for property purchases.

Even though the reduction in debt level is a good sign, financial experts are concerned with the fact that Brits do not make an effort to pay down mortgage debt quickly.

As such, Howard Archer of IHS Global Insight, said that "The ongoing, appreciable net injection of housing equity in the first quarter highlights the strong desire and perceived need of many people to improve their personal financial balance sheets given high debt levels and serious concerns and uncertainties over the economic situation."