Household Debt: Key Economic Indicators

Household debt as a % of disposable income

Household debt peaked in Q3 2008 at 155.6% of household disposable income. It then declined to 132.4% by late 2015.

Growth in household debt levels accelerated from early 2016, so that the debt-to-income ratio rose again to 136.3% by mid-2017. In Q1 2023 it was 128.9%.

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 the Library paper on household debt.

Current average mortgage interest rates

The average Standard Variable Rate (SVR) was 7.85% in August 2023, up 2.97 percentage points on a year ago.

The average 2-year fixed mortgage rate was 6.21% in August 2023, up 2.61 percentage points on a year ago.   

Individual insolvencies, England and Wales

There were 26,390 individual insolvencies in England and Wales in Q2 2023, 2,254 fewer than in the previous quarter. The largest increase since the current series began in 2010 was seen between Q2 2020 and Q3 2020.

The Q2 2023 level is 11.5% lower than the level in Q2 2022.

In Scotland, there were 2,098 individual insolvencies in Q2 2023, up 3% on the year before.

In Northern Ireland, there were 458 individual insolvencies in Q2 2023, up 4% on the year.