Homeowners are more concerned about working to become debt free than moving up the property ladder at present, it has been suggested.
Adrian Lowcock, a senior investment adviser at Bestinvest, noted that mortgage borrowers are focusing on “paying down their debt” in the current economic climate.
His comments came after figures from the Bank of England found that Britons reduced their outstanding amounts on home loans by Â£8 million during the final quarter of last year.
People may be looking to boost the equity they have in their homes by paying off their mortgage – something that could improve their chances of obtaining lower rates when they come to borrow more.
Being able to access cheaper mortgages is “dependent on a decent loan-to-value”, Mr Lowcock stated.
He added that the trend for reducing debts in this manner indicates that people have a “lack of confidence” in the wider economy.
By Jamie Price