The latest statistics from the Bank of England have shown that homeowners paid off £4million worth of debt that is secured against their homes during the last quarter of 2009.

Millions of borrowers used their earnings to repay their home loans rather than on outgoing expenses in order to reduce their debts in the wake of reported rising unemployment and continued debt problems in the economy.

In 2009 £22.3 billion was repaid against loans that are secured using the equity in people’s homes. The trend of debt repayments rising in the face of economic instability can be seen in the record number of debt repayments seen in the final quarter of 2008, when £7.11 billion was repaid during the housing crash and economic crisis.

The cost of taking out a new mortgage is continuing to fall with lenders now competing again to attract new borrowers who can meet the new, stricter lending criteria.

The Post Office has said that they will be cutting their fixed mortgage rates for the fourth time this year with a market leading rate available on3.15% on a two year fixed mortgage, with a 25% deposit needed on the property.