The House of Commons Library has just released its monthly debt figures.
They can be seen here and a concise summary of the latest trends in household debt, mortgage rates, and individual insolvencies,:
Household Debt-to-Income Ratio Continues to Fall
The level of household debt relative to disposable income has continued its downward trend since early 2022.
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In Q2 2025, the debt-to-income ratio stood at 117.1%.
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This marks a significant decrease from its peak of 155.8% in Q3 2008.
Mortgage Rates Show Stabilisation and Reduction
The cost of borrowing has decreased slightly over the last year, offering some relief to borrowers:
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The average Standard Variable Rate (SVR) in November 2025 was 6.81%, a decrease of 0.75 percentage points compared to the previous year.
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The average two-year fixed mortgage rate in November 2025 was 4.06%, down 0.47 percentage points year-on-year.
Individual Insolvencies See Mixed Trends
Individual insolvency levels show variations across the UK nations:
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England and Wales recorded 30,494 individual insolvencies in Q2 2025, an increase of 3.2% compared to Q2 2024.
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Northern Ireland also saw an increase, up 3% on the year, with 392 insolvencies in Q2 2025.
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In contrast, Scotland saw a decline, with insolvencies falling by 11% on the year to 1,673 in Q1 2025.
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