£9.1bn paid back in second quarter of year as nervous households seek to cut borrowing.
Britain's nervous homeowners paid down a record £9bn on their mortgages between April and June as they struggled to restore their tattered finances.
Figures released by the Bank of England on Wednesday show that a record £9.1bn was paid back in the second quarter of this year alone – the largest figure ever, amounting to 3.5% of consumers' post-tax income.
During the boom years, by contrast, mortgage equity withdrawal peaked at 5.6% of post-tax income, in late 2006.
When house prices were rising rapidly, mortgage equity withdrawal boosted consumer spending as homeowners extended the mortgages on their existing property and spent the proceeds.
