StepChange responds to latest Bank of England Money and Credit data
29 November 2024
New Money and Credit figures released today by the Bank of England show a rise in net borrowing of mortgage debt and the highest net mortgage approvals for house purchases since August 2022.
StepChange Debt Charity says that, while higher borrowing shows increasing consumer confidence, pressure on mortgage holders remains high.
The charity’s own client data reveals that among mortgage holders seeking debt advice, average mortgage arrears have risen 68% year on year, now standing at £9,657.
Richard Lane, Chief Client Officer at StepChange, said:
“Mortgage holders were able to breathe a small sigh of relief over the last few months as the Bank of England cut interest rates two times, and its unsurprising that this is reflected in the number of people securing mortgages. However, it’s important to note that with rates still high compared to a few years ago, many homeowners are struggling to keep on top of mortgage costs and cover all other financial commitments. What’s more, with inflation above the 2% target, there’s no guarantee rates will continue to fall as quickly.
“We’ve seen the amount of mortgage arrears creep up among our own clients this year and it’s a real concern that there could be many more people out there just on the edge of falling behind with payments. For anyone struggling with ongoing mortgage payments or worried about debt – don’t hesitate to reach out to your creditors and ask for help. Mortgage lenders have a regulatory responsibility to support borrowers who’re struggling and may be able to provide forbearance. StepChange can also support with free and impartial debt advice including mortgage debt advice to those in difficulty.”
Notes to Editors
- The Bank of England’s Money and Credit data for October can be found here