House of Commons Library

Household Debt: Key Economic Indicators

Published Thursday, August 1, 2019

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 Q2 2008 at 148% of household disposable income. It then declined to 127% by late 2015.

Growth in household debt levels accelerated from early 2016, so that the debt-to-income ratio rose again to 134% by mid-2017. In Q1 2019 it was 132%.

Household debt

Statistical note: The household debt and income source data were changed in May. 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 4.30% in June 2019, up from 4.28% a year ago.

The average 2-year fixed mortgage rate was 1.65% in June 2019, down slightly from 1.74% a year ago.

Individual insolvencies, England and Wales

There were 30,937 individual insolvencies in England and Wales in Q2 2019, slightly down on the previous quarter, but 14% on the same period in 2018. So far, 2019 has seen considerably more individual insolvencies than any year since 2012.

In Scotland, there were 3,520 individual insolvencies in Q2 2019, up 9.5% on the year and the highest number since Q2 2013.

In Northern Ireland, there were 758 individual insolvencies in Q2 2019, up 17% on the year.

Insolvencies

Commons Briefing papers SN02885

Author: Chris Rhodes

Topics: Economic situation, Financial services, Incomes and poverty

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