Negative equity figures continue

THE amount of equity that UK residents withdrew from their homes was negative for the second quarter running during the three months to the end of September, new figures have revealed.

The Bank of England said equity withdrawal fell to £5.7 billion during the third quarter of the year, meaning that instead of extending their mortgage debt during the period, people focused on repaying their home loan.

The figure is the largest net injection of equity since the records began in 1970, and only the second time that housing equity withdrawal has been negative since 1998.

Andrew Montlake, a partner at mortgage broker Cobalt Capital, said: "Not so long ago, an Englishman's house wasn't just his castle, it was his cash machine, too.

"This, very clearly, is no longer the case."