Household Debt Continues to Fall

Household debt, when measured against disposable income, continues its downward trend. In Q2 2025, the debt-to-income ratio stood at 117.1%. This represents a significant decline from its peak of $155.8\%$ in Q3 2008 and reflects a sustained fall since the start of 2022.

Mortgage Rates Edge Down

The average cost of new mortgages saw slight annual decreases in October 2025:

• Average Standard Variable Rate (SVR): $6.78\%$ (down $0.90$ percentage points from a year ago).

• Average Two-Year Fixed Rate: $4.22\%$ (down $0.18$ percentage points from a year ago).

Individual Insolvencies See Increase

Individual insolvencies across the UK are generally on the rise:

• England and Wales: $30,494$ insolvencies were recorded in Q2 2025, which is $3.2\%$ higher than the same quarter last year.

• Northern Ireland: Insolvencies were up $3\%$ year-on-year in Q2 2025 (392 total).

• Scotland: Bucking the trend, Scotland saw a decrease, with insolvencies falling $11\%$ on the year in Q1 2025 (1,673 total).