-5.6%: Change in the average real wage since pre-crash peak in February 2008
98%: First-time buyer deposit as percentage of average salary, in September 2018
41.5%: Increase in first-time-buyer house prices since 2012
34%: Proportion of income including benefits spent on rent by private renters
0.84%: Average interest rate on a cash ISA in September 2018
18.63%: Average credit card interest rate in September 2018
£59,008: Average total debt per UK household in September 2018
£32,220: Average student debt for 2016 cohort in England
-£38 billion: Change in Public Sector Net Debt (excluding RBS and debt to Bank of England) in the year to September 2018
Every Day in the UK
The population of the UK grew by an estimated 1,074 people a day between 2016 and 2017.
On average, a UK household spends £4.00 a day on water, electricity and gas.
The number of people unemployed fell by 118 per day in the year to September 2018.
Borrowers paid £141 million a day in interest in September 2018.
Citizens Advice Bureaux in England and Wales dealt with 2,683 new debt problems every day during October 2018.
Personal Debt in the UK
People in the UK owed £1.605 trillion at the end of September 2018. This is up from £1.560 trillion at the end of September 2017, an extra £870.78 per UK adult and £76.54 higher than the previous month.
The average total debt per household, including mortgages, was £59,008 in September. The revised figure for August was £58,861.
Per adult in the UK that’s an average debt of £30,819 in September, around 113% of average earnings. This is up from a revised £30,742 a month earlier.
Mortgages, Rent and Housing
Outstanding mortgage lending stood at £1.39 trillion at the end of September. This is up from £1.36 trillion a year earlier.
That means that the estimated average outstanding mortgage for the 11.1 million households with mortgage debt was £125,208 in September.
The average mortgage interest rate was 2.53% at the end of September. Based on this, households with mortgages would pay an average of £3,168 in mortgage interest over the year.
For new loans, the average mortgage interest rate was 2.11%. Using the latest figures from UK Finance, this means new mortgages would attract an average of £3,060 in interest over the year.
According to UK Finance, gross mortgage lending in September totalled an estimated £20.6 billion. This is down 3.3% on September 2017.
Savings and Pensions
In Q2 2018, households saved an average of 4.4% of their post-tax income, including benefits. This is down from 5.2% in Q2 2017. From 2000 to 2015, the savings rate fluctuated mostly in the 6-10% range, with a post-crash peak of 12% in Q3 2009.
The average interest rate for an instant access savings account, not including bonus interest payments, was 0.25% in September 2018. For a cash ISA, this was 0.84%.
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 £2.40 in interest after tax. If they saved it in an average cash ISA, they would receive £10.10.
Spending and Loans
In the year to August 2018, consumer credit increased by 8.1% according to UK Finance, while outstanding levels of credit card borrowing grew by 8.9%, a rate that has been fairly constant over the last year.
In Q2 2018, households in the UK spent £108.7 million a day on water, electricity and gas, or £4.00 per household per day. On a seasonally adjusted basis, this was slightly down on Q1 2018.
The average interest rate on credit card lending bearing interest was 18.63% in September 2018. This is 17.88% above the Bank of England Base Rate of 0.75%.
The Bigger Picture
The UK economy grew by 0.6% in the three months to September 2018, an increase from the 0.4% growth in the second quarter of 2018, according to the latest estimates from the Office of National Statistics.
The CPI (Consumer Prices Index) 12 month rate stood at 2.4% in the year to September, down 0.3% on the year to August. The inflation rate has been above the Bank of England’s 2% target since February 2017.
The highest rates of inflation over the 12 months to September were in transport (5.6%), alcohol and tobacco (4.1%), and recreation and culture (3.0%).
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.