Tuesday, Apr 06, 2010
It's pay back time
BBC: Home owners' equity is still increasing
UK homeowners increased the value of their stake in their properties by £22.3bn last year, Bank of England figures show. They reflect continued decisions by homeowners to pay off more of their mortgages, and lenders' insistence that borrowers put down large deposits. The trend towards equity injections started in the second quarter of 2009. In the preceding 10 years, homeowners had borrowed £327bn against the inflated value of their homes.
Posted by jack c @ 02:41 PM (826 views) Add Comment
6 Comments
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1. alan said...
In the first 3 months of this year, relatively little was borrowed, so expect to see similar "increased equity" figures when the first 3 months figures for 2010 are revealed.
I suspect homeowners are expecting rates to rise and paying down debt in advance...anyone agree?
2. enuii said...
Nope, they just ain't mewing anymore.
3. inbreda said...
and the only reason they arent MEWing is because the banks wont let them.
they are currently hitting the final limit on the final credit card before heading down to CAB to moan about how badly the world has treated them.
4. paul said...
Don't you just love the BBC's spin on it? It's not that borrowing is going through the floor, but that equity is increasing.
No wonder the foreign news media like the Washington Post and New York Times gently ridicule the BBC's selective reporting.
5. Mrmagooisagovteconomist said...
In response to Alans question, about 25% of lloyds tsb mortgagees are (from figs published in telegraph) paying down debt at this time of abnormally low rates, But and it is a big but (no pun intended) they are concerned about the other 75% who are obviously spending their current windfall IR relief (thanks Gordy) with no regard to the future, hence full page ads in several tabloids and broadsheets advising mortgagees to pay down debt ! (by lloydstsb). They definetly know whats coming!. One further thing, would someone kindly inform the Biased Broadcasting Co operative that to own something you dont owe on it ! You are a HOMEOWNER when you have paid back the LOAN secured against the EQUITY (the banks if you fail in anyway) until then you are a net debtor and living at the banks grace! But then again if they broadcast that their favourites might not get back in!
6. a saver said...
Aren't these the people who reported that Beckham had injured his 'Achilles Heel'?