UK Mortgage Debt Now Trillion Pounds Plus

The Wealth and Assets survey by the Office for National Statistics (ONS) is done every 2 years and 2019’s report shows that property debt comprising of mortgages and equity release has risen by 3% to £1.16 trillion.

Household debt totalled £1.28 trillion.  Property debt was £1.16 trillion or 91% of total debt with financial debt (comprising of credit cards, loans and other non-mortgage debt) at £119 billion.

Since the last survey 2012 to 2014 both debts have continued to rise.

The survey analyses debt in 10 wealth bands, it ranges from the wealthiest 10% to the poorest 10% of households. The least wealthy are the most likely to have financial debt.

Up to 70% of middle wealth individuals are most likely to have property debt with on average 45-54% of households have property debt compared to 2% of households in the lowest 10% of people.

Hire purchase and student loan debt also rose by £12 billion or 11%.

Finally, looking at those in trouble, 4% of households have debt problems not including mortgage arrears.

Comment

Borrowing ‘makes the World go around, the world go around” (there’s a tune in that) but we believe that personal debt needs to be managed and indeed regulated even further.  It is sometimes quite worrying how easy it is to borrow money and lenders should be held to account in our ability to service debt and affordability checks should be made for all levels of debt, not just today but also with stress debts on affordability in interest rates rise or if your personal circumstances changes.