Mortgage debt down £8bn

BRITONS reduced their mortgage debt by £8.8 billion in the first quarter of this year as the housing market remained subdued, Bank of England figures revealed.

The figures show households are putting more money into the housing market, through deposits or mortgage repayments for example, than they are taking out, with a cumulative £122bn injected since the summer of 2008.

However, the Bank said there was “little sign” that households are trying to pay down debt more quickly, and a lack of activity in the housing market and a reduction in remortgaging were underlying the figures.

Several surveys have forecast house sales to remain sluggish this year, with continued uncertainty over the economy and the eurozone.