UK homeowners pay off £8bn of mortgage debt

British homeowners are benefiting from the cuts in interest rates by paying off their mortgages in record amounts, figures showed today.

A huge £8bn of mortgage debt was repaid in the fourth quarter of last year, according to Bank of England figures, as Britons with tracker mortgages responded to the sharp fall in interest repayments by pumping the spare cash into paying off their capital.

It follows figures earlier this week showing record inflows of savings into building societies and data last week showing a rebound in the proportion of income people are saving, as those in employment take the opportunity to pay off debt and prepare for leaner times as the country sinks into recession.

Read more: UK homeowners pay off £8bn of mortgage debt

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