View more on these topics

Debt spirals in midst of financial crisis

Around 40% of home owners owe more than £90,000 in secured debt, reveals a survey carried out for the Bank of England.

NMG Research carried out a survey of nearly 2,500 households on behalf of the BoE looking at the financial position of British households.

It found that the number of home owners who owed more than £90,000 in secured debt has risen 35% since the mid-1990s.

The survey also recorded a further 15% of home owners owed over £150,000 in secured debt.

The total amount of debt owed by UK households reached almost £1.6trillion by Q2 2008, which works out at £60,000 per household.

The survey notes that around 40% of respondents with a mortgage had experienced a decline in income of £100 a month. But only 3% of the households surveyed reported having fallen behind on payments.

Secured debt relating to buy-to-let mortgages grew from under 2% in 2000 to over 10% this year.

The research concludes: “There was evidence that more households were finding their debts to be a burden to them than was the case in previous NMG surveys.

“Those that did report having fallen behind were mainly mortgagors with high LTV ratios or renters. Few households saw bankruptcy as a solution to their problems, with most households saying they would try to resolve their debt problems by cutting back on household spending.”


Computer says NO

The weekend’s FT Money section had an article headed ‘Borrowers refused best rates’, focusing on good quality clients being turned down for stupid reasons, a problem which is escalating.

Survey cover

EEF/Jelf Employee Benefits Sickness Absence Survey 2015

EEF stated in its 2015 EEF Manifesto that the UK’s growth prospects depend on people being fit, working and productive. Keeping people in work and helping people return to work is very important for the manufacturing sector. It means boosting productivity by getting people back into work as early as is possible, as well as fostering workplace cultures and environments that proactively manage individuals’ health conditions so that all can benefit from lower sickness absence outcomes.


News and expert analysis straight to your inbox

Sign up