CCR Magazine

You are here  :Home arrow News arrow Outstanding Mortgages hits all-time high in the UK
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Outstanding Mortgages hits all-time high in the UK PDF Print E-mail
Wednesday, 18 October 2017
Continued growth in house prices, along with a small decline in the number of outstanding home loans has led to the highest level of mortgage debt per household ever recorded. 

The October Money Statistics, produced by the Money Charity, have revealed that the average outstanding mortgage in the UK stood at an eye-watering £121,678 for the month of August, in 2017.

This has increased on 2013, when the figure stood at £109,487, and is the first year where the average balance on mortgages has been pushed over £120,000.

Driven by ever-increasing house prices, it is also fed by longer and longer mortgages repayment periods and larger loans – the amount of 35-year mortgage terms has increased from 2.7% in 2005 to 15% in 2017.

Furthermore, as wages stagnate in real terms, the average first time buyer is borrowing 3.63 times their income. Therefore, with outstanding mortgage debt rising to new levels, and higher interest rates predicted in the next month, it could become harder for households to pay off such mortgages.

However, the amount of mortgage accounts with arrears has remained largely unchanged, and payments due for loans in arrears have continued to increase over the past year. This is a knock-on effect from continued low interest rates.

Steph Hayter, Acting Chief Executive of The Money Charity says: “The rising amount we owe on mortgages should be a concern to all of us. As interest rates seem likely to rise, people may soon begin to feel the effects on their wallets.”

“Those with large outstanding debts, especially people with variable rate mortgages, should prepare for a time in the near future where monthly repayments will be higher.”

Other key points from the October Money Statistics include:
The savings ratio recovered up to 5.9% in Q2 2017, up from 1.9% in the previous quarter, according to the Office for National Statistics.
Outstanding consumer credit per adult has increased by £369 in the month of August 2017.
35% of households are believed to have no savings whatsoever in the UK.
 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197