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Household Debt: Key Economic Indicators

Published Friday, October 27, 2017

Household debt: Data on the latest household debt statistics, including net lending, mortgage interest rates and insolvencies.

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Household debt as a % of disposable income

Household debt peaked in Q1 2008 at 157% of household gross disposable income. It then fell until 2011, before falling more slowly over the next few years.

In 2016 household debt started to increase again as a proportion of income. It stood at 140% of disposable income in Q2 2017 – its highest value since Q3 2012.

Household debt, % of disposable income

Current average mortgage interest rates

The average Standard Variable Rate (SVR) fell following the cut in the base interest rate by the Bank of England in August 2016. The SVR was 4.32% in September 2017, similar to its level a year ago.

The average 2-year fixed mortgage rate also fell following the rate cut. It was 1.40% in September, down 0.19% points on the year.

 

Individual insolvencies, England and Wales

There were 25,479 individual insolvencies in England and Wales in Q3 2017, an increase of 11% on the previous quarter, and 8% up on the same period in 2016. The number of individual insolvencies in the first three quarters of 2017 was the highest first three quarterly total since 2014.

In Scotland, there were 2,472 individual insolvencies in Q3 2017, a fall of 0.5% on a year earlier. In Northern Ireland, there were 684 individual insolvencies in Q3 2017, an increase of 25.0% on a year earlier. 

 

 

Commons Briefing papers SN02885

Author: Federico Mor

Topics: Economic situation, Financial services, Incomes and poverty

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