Household Debt and Mortgage Rates:

• Household debt as a percentage of disposable income has continued to decline, reaching 117.2% in Q1 2025. This is a significant drop from its peak of 156.4% in 2008.
• Mortgage rates have also seen a decrease. As of July 2025, the average Standard Variable Rate (SVR) was 6.99%, down 1.08 percentage points from the previous year, while the average 2-year fixed rate was 4.25%, a 0.74 percentage point decrease.

Insolvencies:

• Individual insolvencies are on the rise in England and Wales, with 30,494 cases in Q2 2025, a 3.2% increase compared to the same quarter in the previous year.
• In contrast, Scotland saw an 11% drop in individual insolvencies in Q1 2025, while Northern Ireland experienced a 3% increase in Q2 2025.