Of course before you can really start to save it is best to pay down any debts. This month The Bank of England reported that homeowners paid £5.8bn off their mortgages in the first quarter of 2011. That followed a record £7.1bn reduction in housing debt in the last three months of 2010.
The Bank of England's housing equity withdrawal figures revealed that householders have now been paying down their average mortgage debt for three years in a row. It means that, since the middle of 2008, homeowners have invested a total of £63.7bn in their properties.
Before the credit crunch the opposite situation was the norm, with persistent housing equity withdrawal between 1997 and the first quarter of 2008. In fact, the record quarterly housing equity withdrawal was the £13.4bn recorded in the first three months of 2007
But the paying down of mortgages is bad news for the high street, David Birne, an insolvency practitioner at HW Fishe. "The reduction of mortgage debt is always a good thing for the individual household but when it happens on such a scale and over such a time period it can have major ramifications for business, as less money makes it on to the high street.
With so much uncertaintly around interest rates and employment it is hardly surprising individuals are protecting their own interest first. If you want to review the best way to reduce your mortgage and save, IFA’s in Bishop Stortford are here to help.
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