Household Debt: Key Economic Indicators

Household debt as a % of disposable income

Household debt peaked in Q2 2008 at 151.5% of household disposable income. It then declined to 128.4% by late 2015.

Growth in household debt levels accelerated from early 2016, so that the debt-to-income ratio rose again to 133.4% by mid-2017. In Q2 2021 it was 130.5%.

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 3.61% in September 2021, down 0.04 percentage points on a year ago.

The average 2-year fixed mortgage rate was 1.20% in September 2021, down 0.55 percentage points on a year ago.  

Individual insolvencies, England and Wales

There were 27,662 individual insolvencies in England and Wales in Q2 2021, 1,233 fewer than in the previous quarter. The largest increase since the current series began in 2010 was seen between Q3 2020 and Q4 2020.

The Q2 2021 level is 13.9% lower than the level in Q2 2020.

In Scotland, there were 1,884 individual insolvencies in Q2 2021, 10% lower than a year before.

In Northern Ireland, there were 583 individual insolvencies in Q2 2021, up 63% on the year.