Money Wellness
Three model houses on top of a calculator
category iconHousing
calendar icon11 Oct 2023

Brits ‘could be storing up problems with longer mortgages and higher credit card use’

The Bank of England’s Financial Policy Committee (FPC) has warned that current borrowing trends could lead to people facing debt troubles in the future.

Although owner-occupier mortgage arrears are relatively low, a report from the committee revealed a notable increase in the number of people opting for mortgages of 35 years and above. It also found a small rise in those moving to interest-only deals.

Although this could help homeowners deal with the cost-of-living crisis in the short term, it could be they’re just kicking the problem down the road.

More misery for renters

Rising interest rates have also seen mortgage costs increase for landlords. The FPC predicts this will cause some to sell up pushing down house prices.

But others, it suggests, will look to pass on rising costs to tenants, piling more misery on struggling renters.

Credit card use on the up

The FPC also pointed to evidence of higher credit card use. It warned this could lead to debt problems for some in the near future, especially if unemployment starts to rise in the face of the struggling economy.

Struggling with the rising cost of living?

If you’re struggling to keep up with your bills as a result of rising living costs, get in touch for debt advice.

We can:

  • check you’re getting all the benefits you’re entitled to
  • help come up with a realistic budget you can stick to
  • advise if there are any suitable debt solutions that could lower your monthly payments and even write off some of what you owe

All our advice is free and impartial. So finding out what your options are won’t cost a thing. Some debt solutions are also free. For others, there’s a fee.

You can get advice online at a time and place to suit you. Or if you prefer to talk on the phone, you can reach us on 0161 518 8285. We’re here 8am-8pm Monday to Friday, and between 10am-4pm over the weekend.

Avatar of Rebecca Routledge

Rebecca Routledge

A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.

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