Household Debt: Key Economic Indicators

SOURCE: https://commonslibrary.parliament.uk/research-briefings/sn02885

Household debt as a % of disposable income

Household debt peaked in Q2 2008 at 150.1% of household disposable income. It then declined to 126.5% by late 2015.

Growth in household debt levels accelerated from early 2016, so that the debt-to-income ratio rose again to 131.5% by mid-2017. In Q1 2021 it was 130.2%.

Statistical note: The household debt and income source data were changed in May 2019. 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 3.62% in June 2021, down 0.03% points on a year ago.

The average 2-year fixed mortgage rate was 1.37% in June 2021, down 0.04% on a year ago. 

Individual insolvencies, England and Wales

There were 29,140 individual insolvencies in England and Wales in Q1 2021, 1,629 fewer than in the previous quarter. This follows the largest increase since the current series began in 2010, seen between Q3 2020 and Q4 2020.

The Q1 2021 level is 0.7% higher than the level in Q1 2020.

In Scotland, there were 1,675 individual insolvencies in Q1 2021, 47% lower than a year before.

In Northern Ireland, there were 424 individual insolvencies in Q1 2021, down 32% on the year.

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