The Money Statistics August 2019

Striking Numbers

  • -0.2%: Change in UK Gross Domestic Product in the three months to June 2019
  • £59,166: Average total debt per UK household in June 2019
  • 0.3%: Average increase in house prices in the year to July 2019, according to Nationwide
  • -5.0%: Change in the average real wage since the pre-crash peak in February 2008
  • 2.1%: Increase in Consumer Prices Index in the year to July 2019
  • 0.83%: Average interest rate on a cash ISA in June 2019
  • 19.99%: Average credit card interest rate in June 2019
  • £2,625: Average credit card debt per household in June 2019
  • 26 years and 8 months: Time to pay off average credit card debt making only the minimum payment each month

Every Day in the UK

  • 340 people a day were declared insolvent or bankrupt in England and Wales in April to June 2019. This was equivalent to one person every 4 minutes and 14 seconds.
  • In Northern Ireland, there were 8 insolvencies per day and in Scotland 39 insolvencies per day.
  • Citizens Advice Bureaux in England and Wales dealt with 2,566 debt issues every day in the year to July 2019.
  • The number of UK mortgages with arrears of over 2.5% of the remaining balance fell by 6 a day.
  • The number of people unemployed in the UK fell by 90 per day in the year to June 2019.

Personal Debt in the UK

  • People in the UK owed £1,642 billion at the end of June 2019. This is up from £1,596 billion at the end of June 2018, an extra £887 per UK adult over the year.
  • The average total debt per household, including mortgages, was £59,166.
  • Per adult in the UK that’s an average debt of £31,139, around 111.0% of average earnings. This is up from a revised £31,067 a month earlier.

Mortgages, Rent and Housing

  • Outstanding mortgage lending stood at £1.424 trillion at the end of June 2019. This is up from £1.383 trillion a year earlier.
  • That means that the estimated average outstanding mortgage for the 10.95 million households with mortgage debt was £130,068 in June 2019.
  • The average mortgage interest rate was 2.43% at the end of June. Based on this, households with mortgages would pay an average of £3,161 in mortgage interest over the year.
  • For new loans, the average mortgage interest rate was 2.03%. Using the latest figures from UK Finance, this means new mortgages would attract an average of £3,495 in interest over the year.
  • According to UK Finance, gross mortgage lending in June 2019 totalled an estimated £21.9 billion, down 4.0% on June 2018.

Savings and Pensions

  • The average interest rate for an instant access savings account, not including bonus interest payments, was 0.42% in June 2019. For a cash ISA, this was 0.83%.
  • In Q1 2019, households saved an average of 4.4% of their post-tax income, including benefits. This compares with 4.1% in Q1 2018. From 2000 to 2015, the savings rate fluctuated mostly in the 6-10% range, with a post-crash peak of 12% in Q3 2009.
  • If someone on the average salary saved 4.4% of their income in an average instant access savings account for a year, they would receive £4.15 in interest after tax. If they saved it in an average cash ISA, they would receive £10.24.

Spending and Loans

  • In the year to June 2019, consumer credit increased by 2.4% according to the Bank of England, while outstanding levels of credit card borrowing grew by 1.2%, significantly down on the rate of growth in early 2018.
  • In Q1 2019, households in the UK spent £111.27 million a day on water, electricity and gas, or £4.05 per household per day. On a seasonally adjusted basis, this was the same as in Q4 2018.
  • The average interest rate on credit card lending bearing interest was 19.99% in June 2019. This is 19.24% above the Bank of England Base Rate of 0.75%.

Financial Inclusion

  • According to the FCA, in the UK in 2017 there were 1.3 million people who did not have a bank account.
  • According to ONS, there were 11,065 bank and building society branches in the UK in 2018. This was a reduction of 2,280 branches (17%) since 2012.
  • According to the 2019 Access to Cash Review, 2.2 million people use only cash in their daily transactions.

The Bigger Picture

  • The UK economy grew by 0.2% in the three months to June 2019 compared with the three months from January 2019 to March 2019, according to the latest estimates from the Office of National Statistics.
  • The CPI (Consumer Prices Index) increased by 2.1% in the year to July 2019, an increase of 0.1% on the year to June 2019.
  • The highest rates of inflation over the 12 months to July 2019 were for communication (3.8%), alcohol and tobacco (3.8%), education (3.1%), and restaurants and hotels (3.1%). The lowest was for clothing and footwear (-0.4%.)

About The Money Charity:

The Money Charity is the UK’s financial capability charity. Our vision is that everyone has the ability to be on top of their money as a part of everyday life. We empower people across the UK to build the skills, knowledge, attitudes and behaviours to make the most of their money throughout their lives.