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More Brits are choosing to overpay on their mortgage rather than push themselves further into debt, proving that many people now see that the days of over-spending are truly over.

The Bank of England estimate that in the first three months of 2009, -£8.1bn was taken from peoples home's equity – the negative figure means that homeowners injected a net total of £8.1bn into housing equity in the first part of the year.

This is great news – people are looking to the long term and investing wisely instead of spending for today. Many people have found that they are unable to get hold of a mortgage either due to negative equity or bad credit – so they are investing now, while the can to be a better borrower when the upturn comes around.

The Bank of England only estimated that Brits would inject £7.8bn into their homes' equity over the first part of the year, so borrowers are actually doing better than expected. They are heeding the warnings of the mortgage experts and understanding that increasing equity today means a better mortgage and a better financial outlook in the future.

if you are unable to move from your current mortgage deal, but are enjoying low rates thanks to the 0.5% base rate, it's definitely time to overpay. Talk to a mortgage adviser about what you can do to improve your chances of mortgage approval in the near future.

SOURCE: Bank of England, 03/07/09

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