Homeowners paid off their mortgages at a record rate in the final three months of last year as they battened down the hatches in the face of the economic storm.

Borrowers reduced their mortgage debt by £8bn between October and December last year, figures from the Bank of England indicated. This was the third consecutive quarter that repayments outstripped equity withdrawal and the biggest net equity injection since the Bank's records started in 1970. The total outstanding mortgage debt is about £1.2tn.

Financial Times, The Times