The Money Statistics October 2018

Striking Numbers

  • 93: Number of times per second LINK cash machines used across the UK in September 2018
  • £58,776: Average total debt per UK household in August 2018
  • £32,220: Average student debt for 2016 cohort in England
  • 94%: First-time buyer deposit, as percent of average salary, in August 2018
  • 0.2%: Average interest rate on instant access savings account in August 2018
  • 18.38%: Average credit card interest rate in August 2018
  • 34%: Proportion of income, including benefits, spent on rent by private renters
  • + 0.3%: Change in house prices in September 2018 according to Nationwide
  • – £29 billion: Change in Public Sector Net Debt (excluding RBS and debt to Bank of England) in the year to August 2018

Every Day in the UK

  • Citizens Advice Bureaux in England and Wales dealt with 2,310 new debt problems every day during September 2018.
  • 12 properties were repossessed every day in Q2 2018, or one every 2 hours.
  • Borrowers paid £137 million a day in interest in August 2018.
  • The number of people unemployed fell by 219 per day in the year to August 2018.

Personal Debt in the UK

  • People in the UK owed £1.5987 trillion at the end of August 2018. This is up from £1.5544 trillion at the end of August 2017, an extra £849.91 per UK adult and £66.96 higher than the previous month.
  • The average total debt per household, including mortgages, was £58,776 in August. The revised figure for July was £58,648.
  • Per adult in the UK that’s an average debt of £30,698 in August, around 113.2% of average earnings, up 0.2% on last month. This is up from a revised £30,631 a month earlier.

Mortgages, Rent and Housing

  • Outstanding mortgage lending stood at £1.385 trillion at the end of August. This is up from £1.352 trillion a year earlier.
  • That means that the estimated average outstanding mortgage for the 11.1 million households with mortgage debt was £124,732 in August.
  • The average mortgage interest rate was 2.45% at the end of August. Based on this, households with mortgages would pay an average of £3,056 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 £3,070 in interest over the year.
  • According to UK Finance, gross mortgage lending in August totalled an estimated £24.1 billion. This is down 2.1% on August 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 0.2% in August 2018. For a cash ISA, this was 0.75%.
  • 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 £1.91 in interest after tax. If they saved it in an average cash ISA, they would receive £8.95.

Spending and Loans

  • In the year to July 2018, consumer credit increased by 8.5% 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 18.38% in August 2018. This is 17.63% above the Bank of England Base Rate of 0.75%.

The Bigger Picture

  • The UK economy grew by 0.7% in the three months to August 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 2.7% in the year to August, up 0.2% on the year to July. The inflation rate has been above the Bank of England’s 2% target since February 2017.
  • The highest rates inflation over the 12 months to August were in transport (6.1%), alcohol and tobacco (4.1%), and recreation and culture (3.6%).

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.