Families put big spending on hold to pay off their mortgages as debt falls by 8bn in three months

Families put big spending on hold to pay off their mortgages as debt falls by 8bn in three months Homeowners paid off more than they borrowed in the third quarter of 2012It was the 18th quarter in a row that mortgage debt has fallen . It was the 18th quarter in a row that mortgage debt has fallen, and families have now ploughed 137.5billion of equity into their homes since early 2008. The injection of equity – which increases the proportion that households own against the proportion that is mortgaged – is in stark contrast to the borrowing binge of the decade before the financial crisis struck

Cash-rich banks still wont lend to families and firms despite borrowing 4.4billion from Bank of England

Cash-rich banks still won’t lend to families and firms despite borrowing 4.4billion from Bank of EnglandFigures are first insight into success of Government's lending schemeScheme lets banks borrow for 0.25 per cent as long as they maintain lendingMust use money to lend to the 'real' economy such as small firms | UPDATED: 02:02 GMT, 4 December 2012 The figures are the first insight into the success of the Government and the Bank’s much-hyped ‘Funding for Lending’ scheme, aimed at solving Britain’s lending crisis. One expert yesterday joked the name was ‘unintentionally ironic’ because there is ‘precious little lending going on.’ Under the scheme, banks and building societies can borrow an unlimited amount of money for as little as 0.25 per cent as long as they maintain, or increase, their lending. They must use the money to lend to the real economy, such as small firms and homeowners or first-time buyers who need a mortgage