UK debt overtakes GDP to £1.46trn

The rate of borrowing has slowed substantially to 0.8% from double figures two years ago, said Credit Action, but their figures showed that total lending in April rose by £0.4bn, while secured lending increased by £0.5bn to £1.239trn by month end.

The average household debt is £57,915 including mortgages, or £8761 excluding mortgages.
Credit Action reported that 107 properties were repossessed each day in Q1 2010. Landlords have been hit hardest, with an average of 363 buy-to-let possession claims issued each day and 238 landlord possession orders.

Chris Tapp, director of CreditAction, said that with an interest rate rise on the horizon, problems could be brewing.

“People who were struggling before the rate drops could find themselves in trouble quite quickly if rates rise again. We’ll be keeping an eye on that demographic,” he said.

Council of Mortgage Lender (CML) figures showed both repossessions at 0.09% and arrears figures at 1.64 down on the first quarter.