Get back in the habit

Figures recently released by the Bank of England show that the amount families are borrowing against the value of their property is on the increase. The household equity index hit a two-year high of 6.7% in the last quarter of 2006, falling only slightly to 6.1% for the first quarter of 2007. As property prices rise, households are tapping into 'unused equity' in their property, and borrowing more money from their mortgages to meet their financial needs. The most likely reason for this is to pay off credit card debts from increased spending. This appears to mean people in the UK are happy...