The House of Commons library has just released its report on key trends in UK household finances:  The report can be seen here, and in summary:

Household Debt as a Percentage of Disposable Income

• Peaked at 156.4% in Q3 2008, fell to 134.6% by early 2016, and further declined to 120.0% in Q3 2024.
• The trend suggests a steady reduction in household debt burden over time, particularly post-2008 financial crisis.

Mortgage Interest Rates (January 2025)

• Standard Variable Rate (SVR): 7.49%, slightly down from last year.
• 2-year fixed mortgage rate: 4.65%, which has been decreasing in recent quarters.
• Mortgage rates saw sharp rises from 2022, reflecting the Bank of England’s rate hikes, but are now stabilising.

Individual Insolvencies (Q4 2024)

• England & Wales: 29,013 insolvencies, down 1,970 from Q3 but up 15.0% year-on-year.
• Scotland: 1,891 insolvencies, down 9% from Q3 2023.
• Northern Ireland: 400 insolvencies, up 28% year-on-year.
• The figures suggest financial strain has increased in 2024, though insolvencies are fluctuating by region.