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At least for those in reliable work.

http://www.bbc.co.uk/news/business-12956948

Homeowners paid off more of their mortgage borrowings last year than they had done in any other single year, Bank of England figures show.

Mortgage borrowers paid back more than £24bn to lenders in 2010, the highest since records began in 1970.

They returned £7bn in the final three months of the year, a record amount during any quarter since the Bank started collecting the figures.

The figures also include money paid as deposits by homebuyers.

In the boom, people used extra mortgage borrowing to cover other spending.

Switching trend

From July 1998 to March 2008 homeowners borrowed an extra £328bn against the rising value of their homes

This is known as housing equity withdrawal. Homeowners cashed in on the increasing value of their homes to buy cars and holidays.

Now the opposite is happening, as families try to reduce their debts and lenders demand higher mortgage deposits.

Borrowers have also taken advantage of low interest rates to pay back more of their home loans while mortgage costs are low.

There has been an injection of housing equity for 11 quarters in a row, the figures show.

Homeowners have now collectively injected £57.4bn into their housing equity since the second quarter of 2008, when the trend switched from withdrawal.

Lenders demanding higher deposits has also increased first-time buyers' financial stake in their homes.

"Extremely low savings rates have made it much more attractive for many people to use any spare funds that they have to reduce their mortgages," said Howard Archer, chief UK and European economist at IHS Global Insight.

Availability

The latest figures show that households spent the equivalent of 2.7% of their post-tax income on reducing their mortgages.

During the boom times, equity withdrawal was providing homeowners with the equivalent of a 9% post-tax boost to their incomes.

Mortgage rationing through demands for higher deposits has contributed to the trend in equity injection.

However, the availability of mortgages has picked up in recent months.

Figures from the financial information service Moneyfacts show that in March, there was an increase in availability of home loans at all loan-to-value levels.

For example, there were 228 mortgages available at the start of April for those offering a deposit of 10% of the value of a home, compared with 202 a month earlier.

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the figures included deposits????

deposits?.....what the frack has that to do with mortgage payback??

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the figures included deposits????

deposits?.....what the frack has that to do with mortgage payback??

Most FTBs in the UK (particularly the SE) pay up front without the need for mortgages now due to the extreme undervaluation of property, on such a basis it makes sense as the deposit is now what used to be the mortgage

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Most FTBs in the UK (particularly the SE) pay up front without the need for mortgages now due to the extreme undervaluation of property, on such a basis it makes sense as the deposit is now what used to be the mortgage

That does not make sense, are you saying that:

A: SE property is extremely undervalued

B: Most FTBs in the UK are cash buyers

C: These figures include all cash buyers?

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This is good news, surely this means the banks capital ratios are improving and the BOE can up the rates without worrying too much about having to worry too much about banks collapsing, no?

No way they asked the Govt to hold back the dates when they have to have certain amount of cash in hand - thats why they are desperate for as many people as possible to pay down mortgages/MEWING to allow for less repos when rates go back up coz they have a bit of equity built up again (to lose as hp's go further down!).

Edited by erranta

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That does not make sense, are you saying that:

A: SE property is extremely undervalued

B: Most FTBs in the UK are cash buyers

C: These figures include all cash buyers?

it wasnt supposed to....doh!

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No way they asked the Govt to hold back the dates when they have to have certain amount of cash in hand

But you would, wouldn't you ?

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  • 276 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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