House of Commons Library

Household Debt: Key Economic Indicators

Published Friday, June 1, 2018

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 148% of household disposable income. It then fell until reaching 127% by late 2015.

Starting in early 2016, growth in household debt levels accelerated, leading to the debt-to-income ratio to increase to 133% in Q4 2017.


UK household debt to income ratio since 2007

Statistical note: The household debt and income source data have been changed. Previously debt and income totals included the non-profit sector (mostly charities and universities). The new data reflects only individuals in the household sector. The overall historical trends are unchanged. For more see Box 1 in the Library paper on household debt.

Current average mortgage interest rates

The average Standard Variable Rate (SVR) was 4.18% in April 2018, down slightly on the level seen a year ago.

The average 2-year fixed mortgage rate was 1.7% in April, up slightly on the level seen a year ago.

Individual insolvencies, England and Wales

There were 27,388 individual insolvencies in England and Wales in Q1 2018, up 7% on the previous quarter, and 9% up on the same period in 2016. The total number of insolvencies in Q1 2018 was the highest number of individual insolvencies since 2012.

In Scotland, there were 2,501 individual insolvencies in Q1 2018, a fall of 0.6% on a year earlier.

In Northern Ireland, there were 574 individual insolvencies in Q1 2018, an fall of% on a year earlier. There were 2,878 individual insolvencies in 2017.


Commons Briefing papers SN02885

Author: Chris Rhodes

Topics: Economic situation, Financial services, Incomes and poverty

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