UK homeowners looking to reduce mortgage liabilities
During the period between April 2010 and June 2010 the Bank of England revealed that UK homeowners repaid £6.2 billion of outstanding mortgage liabilities. This is the largest injection of cash back into the UK mortgage arena since the first quarter of 2009 and would seem to indicate that UK taxpayers are more concerned with repaying their debts at the moment than taking out further liquidity. So why are UK taxpayers turning ultra-cautious?
There are fears that as the UK economy struggles we will see the criteria for UK mortgages tightened and we could see the UK employment market come under significant pressure. As a consequence, many in the UK are now looking to repay as much of their outstanding mortgages as possible to take pressure off as and when the economic downturn occurs. However, the fact is that many people may live to regret this short-term injection of capital back into the mortgage market because ultimately if they do struggle in the weeks and months ahead it is unlikely they will be able to dip back into their mortgage pot.
While many people are unwilling to admit potential problems for the UK economy in the short to medium term, the signals are that everybody from the Bank of England to mortgage providers, from taxpayers to business leaders are looking to batten down the hatches for what could be a stormy time in the short to medium term.
Share this..
Related stories
UK house price growth slows
27/03/2015 UK house price growth has slowed for the 7th month in a row, according to the latest figures from Nationwide Building Society. Annual house price growth fell from 5.7% in February to 5.1% in March. House prices rose slightly by 0.1%, meaning the average house price is now £189,454. This figure is based on mortgages approved by Nationwide, adjusted to reflect the typical home....
Read MoreMortgage costs continue to fall
The Council of Mortgage Lenders (CML) has today confirmed that the cost of UK mortgages has fallen to a five-year low. The percentage of income required to cover the average mortgage payment has now fallen to 12% which will bring more and more people into the mortgage market and hopefully improved demand for property. While it has to be said that the average household income has also fallen ove...
Read MoreMortgages top 2014 financial wish list
16/01/2014 Almost 40% of people say that their main financial aim within the next year is to get a mortgage, shows data collected from our online poll. After a year in which property prices continued to steadily rise on the back of increased demand, it seems the hunger to get on the property ladder will continue into 2014. Part of the reason for this is the release of Help to Buy last year,...
Read MoreFirst time buyers make insurance mistakes
15/06/2015 Almost half of all first time buyers fail to budget home insurance into their costs when buying a home. A study by the Co-operative bank shows that due to lack of budgeting, 28% of people who have bought their first home in the last five years have left it uninsured. This works out at £1.5 billion worth of property and contents currently at risk, according to the research....
Read MoreAbbey advises first time buyers
The 1.1 million first time buyers who are putting off their purchases thanks to the credit crunch should save their deposits wisely, Abbey said today.According to the mortgage lender, around £31 billion has been collectively saved by this group in the expectation of buying a home.However, the crunch has led to many firms tightening their mortgage criteria - making it much harder to secure a loan....
Read More