Brits continue to clear their debt

UK property owners are taking advantage of the record low interest rates to cut the size of their mortgage debt.

Official figures from the Bank of England show that UK mortgage payers have for the last twelve months been overpaying their mortgage instalments.

More than £5bn was added in Q1 and this had increased to £6.2bn at the end of Q2. According to BoE sources this is the biggest equity injection since the beginning of 2009.

Economists have applauded the actions of the UK property owners' efforts to chip away at their mortgage debt in the current climate and suggest that they continue to do so while interest rates remain low.

Prior to the global cash crisis the UK had seen a trend of equity release programmes but current economic conditions show that the British public are prepared to pull in their belts and economise on non-essential items to reduce household debt.