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UK mortgage debt comes down as more Britons favors repayment


July 4, 2012 - London

UK's Housing Equity Withdrawal (HEW) of 2012 Q1 was at £8.8bn. This number is down by £0.3bn compared to the figure for 2011 Q4. The HEW as a percentage of post-tax income was at -3.3% in 2012 Q1, compared with the figure for 2011 Q4 of -3.2%.

All these numbers indicates an important trend – More Britons are favoring repayment of their mortgage debt through various sources including through deposits or mortgage repayments than taking out. A Housing equity withdrawals occurs when withdrawals of housing equity by the household sector are larger than injections of equity.

The HEW figures are released by the Bank of England and the Bank reports that there are fewer signs to conclude that debt takers are repaying more quickly than in the past. The bank cited lack of activity in the housing market and a reduction in remortgaging are underlying the figures. The flow of secured lending however remained positive.

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