Here is an overview of The Money Charity’s latest statistics for November 2016:
Personal debt in the UK
- People in the UK owed £1.503 trillion at the end of September 2016. This is up from £1.451 trillion at the end of September 2015 – an extra £1036.58 per UK adult.
- Per adult in the UK that’s an average debt of £29,770 in September – around 113.3% of average earnings. This is slightly up from a revised £29,685 a month earlier.
- Outstanding consumer credit lending was £188.7 billion at the end of September 2016.
- This is up from £176.3 billion at the end of September 2015, and is an increase of £247.10 for every adult in the UK.
- Total net lending to individuals by UK banks and building societies rose by £4.7 billion in September 2016 – or £157m a day.
- Net mortgage lending rose by £3.1 billion in the month; net consumer credit lending rose by £1.5 billion.
Spending and Loans
- During July 2016 an average of 460 purchases were made in the UK every second using debit and credit cards, based on figures from the UK Cards Association.
- LV’s ‘Cost of a Child’ report estimates that parents now spend a record £231,843 on raising a child to their 21st birthday – £30.23 a day
Education and childcare are the main areas of expenditure, costing £74,430 and £70,466.
- The cost of education (including uniforms, after-school clubs and university costs) has increased 128% since 2003, while the cost of childcare has risen by 77.9%.
- Households now spend 38% of their annual income on raising a child.
- The average APR for a £5,000 personal loan is 9.59%, according to the Bank of England. For a £10,000 loan it’s 4.11%, while the average rate for an overdraft is 19.70%.
Mortgages, rent and housing
- Outstanding mortgage lending stood at £1.315 trillion at the end of September.
- This is up from £1.275 trillion a year earlier.
- According to the Council of Mortgage Lenders, gross mortgage lending in September totaled an estimated £20.5 billion.
- This is 2% up on September 2015, and up 7% up on August.
- The Financial Conduct Authority reports that 60.82% of mortgage lending in Q2 2016 was for 75% or less of a property’s value.
- There were 40,533 loans approved for house purchase in September, according to the British Bankers Association (BBA), almost unchanged from a year earlier. The average loan approved for house purchase rose to £176,200.