Saturday, May 22, 2010
Savings after Subprime
"The credit crunch sent our spending into reverse but one in four Britons still has no savings". "We have stopped using our houses as cash machines. During 2007 we were taking out around Â£12-Â£13bn every quarter in "mortgage equity withdrawal", some of it going into building extensions, but much of it frittered away on cars and holidays.Two years on, economists have come up with a new term â€“ equity injection â€“ to describe the fact that we're actually paying down our mortgages, to the tune of around Â£5-Â£6bn every quarter".