With Better PPI Refunds, UK Households Are Paying Off Their Mortgage In Record-Time

July 8, 2015
by admin in PPI News

Figures from the Bank of England indicate that British households are paying off their mortgages faster. Equity withdrawal, easier lender terms and mis sold PPI refunds were to account for the facilitation of payment according to the study.

Consumer spending had been low after the 2008 financial crisis. However, due to the historically low interest rates, households were encouraged o reduce their mortgage and move their money from deposit accounts that pay very low rates of income.

PPI, which refunds more than £3000-5000, is also to blame for the steady stream of mortgage repayment. As PPI is removed from mortgages, people have paid their loans and other financing at a lower rate.

IHS Insight Howard Archer said it was a compelling case of people taking advantage of lower mortgage interest rate to reduce their mortgage balances. Low savings interest rates have also forced many to re-invest their money into mortgage balances to “give them more use.”

PPI or payment protection insurance, mis sold alongside mortgages and credit cards, had cost much from consumer repayments. Now that equity withdrawal has fallen, the BoE is cautiously taking steps to help consumers pay down their debt more quickly.

Figures from the Bank of England indicate that British households are paying off their mortgages faster. Equity withdrawal, easier lender terms and mis sold PPI refunds were to account for the facilitation of payment according to the study.

Consumer spending had been low after the 2008 financial crisis. However, due to the historically low interest rates, households were encouraged o reduce their mortgage and move their money from deposit accounts that pay very low rates of income.

PPI, which refunds more than £3000-5000, is also to blame for the steady stream of mortgage repayment. As PPI is removed from mortgages, people have paid their loans and other financing at a lower rate.

IHS Insight Howard Archer said it was a compelling case of people taking advantage of lower mortgage interest rate to reduce their mortgage balances. Low savings interest rates have also forced many to re-invest their money into mortgage balances to “give them more use.”

PPI or payment protection insurance, mis sold alongside mortgages and credit cards, had cost much from consumer repayments. Now that equity withdrawal has fallen, the BoE is cautiously taking steps to help consumers pay down their debt more quickly.