27
Apr
Homeowners 'reducing mortgage debt'
Homeowners across the UK are reducing the amount of debt they have
as a result of property purchases.
This is according to David Dooks, statistics director at the
British Bankers' Association (BBA), who said that the base rate of
interest has had a bearing on this trend.
The expert stated: "Low interest rates continue to influence
customer behaviour. Homeowners are reducing mortgage debt by
making, or maintaining, higher repayments using the extra cash
generated by lower mortgage rates."
Currently, the base rate stands at 0.5 per cent, following the
decision by the Bank of England's Monetary Policy Committee earlier
this month to leave it at that level.
It is not expected to raise this until the economic recovery looks
more certain.
Mr Dooks made his comments in the wake of the release of figures by
the BBA, which showed that there was a 4.5 per cent annual rise in
banks' net mortgage lending last month.
