Prudent home owners shaved a record £15.4 billion off their mortgage debt in the second quarter of this year as ultra low interest rates helped them pay down what they owe.
The latest figure marks the highest quarterly net injection of housing equity recorded in the Bank of England's series, which goes back to 1970, as well as the 21st consecutive quarterly net injection of cash as the flow of mortgage lending remains weaker than the amounts of money being ploughed back .
Rock bottom mortgage rates and poor returns on savings have made it more attractive for people to use any spare cash they have to pay down their mortgage debts.
The figures, which are published on the Bank's website, show the total net injection of mortgage repayments since summer 2008 has topped £209 billion. The latest quarterly total follows a net housing equity injection of £13.4 billion in the first quarter of this year.
Separate figures recently released by the Bank show the typical interest rate taken out by borrowers on a new mortgage dropped in the second quarter to a new low of 3.47%.
The Bank of England base rate has been held at a historic 0.5% low for more than four years, which has enabled households to pay down their debts as borrowing has become cheaper, while savers have struggled to find any accounts to give them any real returns on their cash.
While this year has seen a pick-up in housing market activity, mortgage lending is still running at around half the level seen before the financial crisis despite lenders offering some of their lowest ever rates.
The mortgage price war has intensified since the Government's flagship Funding for Lending scheme, which gives lenders access to cheap finance to help borrowers, was launched last August.
The average mortgage rate on the market for someone with a 20% deposit and looking for a five-year fixed-rate deal has fallen from 4.58% a year ago to 3.74%, according to financial information website Moneyfacts.
The Government plans to stoke the housing market up further by firing a new phase of its Help to Buy scheme into action next week, which will offer state-backed mortgages to help people with deposits as low as 5% to buy a new-build or existing house.
So far, only Lloyds Banking Group and RBS/NatWest have confirmed their involvement in the new phase of Help to Buy, with other major lenders saying they are still mulling over the details of the initiative before they decide whether to come on board.
Fears have been raised that Help to Buy could lead to mortgage borrowers over-stretching themselves financially and create a house price bubble. Recent studies have shown that demand in the housing market is outstripping supply in some areas, which is putting an upward pressure on prices.
Howard Archer, chief UK and European economist for IHS Global Insight, said: "There is certainly a compelling case for many people to be looking to take advantage of current extended low mortgage interest rates to reduce their outstanding mortgage levels to improve their balance sheets - if they can afford to do so.
"Extremely low savings interest rates have undeniably made it much more attractive for many people to use any spare funds that they have to reduce their mortgages."
Mr Archer said signs that house prices are back on an upward march, combined with some recent reports which indicate consumer confidence in the economy is generally improving, may weaken the desire for households to act cautiously and over-pay their mortgages.
But he added: "V ery low mortgage interest rates, the fact that house prices in many regions remain below their 2007 peak levels and an ongoing need for many people to improve their personal finances suggest that there will continue to be a significant net injection of housing equity for some time to come."