The House of Commons Library has published its regular report, that can be seen here.

In summary:

Household Debt Trends

• Peak levels: Household debt peaked in Q3 2008 at 156.4% of disposable income.

• Current levels: By Q4 2024, the ratio had declined to 118.1%, reflecting a long-term trend of greater caution among borrowers and tighter lending conditions.

• Recent slowdown: Growth in household debt has been slowing since early 2022, possibly due to higher borrowing costs and subdued consumer confidence.

Mortgage Interest Rates – May 2025

• Standard Variable Rate (SVR):
  Now at 7.09%, down 0.91 percentage points from May 2024.

• 2-Year Fixed Rate:
  Now at 4.19%, down 1.00 percentage point year-on-year.

➡️ These figures indicate slightly improved mortgage affordability, although rates remain high relative to historical lows, continuing to pressure first-time buyers and those remortgaging.

Individual Insolvencies

England and Wales (Q1 2025):

• Total: 28,577

• Quarter-on-quarter: Down by 495 cases

• Year-on-year: Up 2.1%

Scotland (Q4 2024):

• Total: 1,784

• Year-on-year: Down 11%

Northern Ireland (Q1 2025):

• Total: 401

• Year-on-year: Up 9%

➡️ While insolvency figures in England and Wales remain high, the quarterly drop suggests some stabilisation. However, the year-on-year increase, especially in Northern Ireland, hints at continued household financial strain.

Key Takeaway:

Despite some relief in mortgage rates, household debt remains historically high and insolvencies are still rising in some regions. The economic pressures of inflation, high interest rates, and cost-of-living challenges continue to shape consumer behaviour and financial resilience.