BANK OF ENGLAND WARNING ON HOUSEHOLD DEBT
Mark Carney, the governor of the Bank of England, has issued a warning about the current high levels of debt in households across the UK. In the main he said that consumers were borrowing more on unsecured debt including their credit cards.
In the last month credit card lending was up on the last month by £571m, a level not seen in recent times. The overall unsecured debt, including loans and overdrafts, is rising at a faster pace.
At the Bank he told a press conference "We are going to remain vigilant around the issue, because we have seen this shift."
The ratio of household debt to income was sitting at 133% in the second quarter of 2016 according to the Bank’s stability report. This they said was high, but not as high as it was during the financial crisis.
This has created an uncertain housing market and for this reason the rules on risky mortgage lending would remain unchanged – lenders were told in June 2014 that they could not lend anymore than 15% of their loan book to anyone borrowing more than 4.5x their annual income. Lenders also have to carry out an affordability test to anyone wanting to take out a mortgage. Part of this includes whether home owners would still be able to afford mortgage payments if interest rates rose by 3% during the first 5 years of the loan.
Because house prices are currently, on average, 4.5 times that of the average income Mr. Carney said the outlook for the housing market was “highly uncertain”.
Posted: 01/12/2016
Ramshaw Transport Ltd.
Head Office: 47 Swan Street,
Bishop Auckland,
Co Durham DL14 9RN
Tel: 01388 832 997
      0800 772 0701

enquiries@ramshawtransport.com
www.ramshawtransport.com

© 2015 Ramshaw Transport Ltd.
Bishop Auckland: 01388 741273
Darlington: 01325 728414
Teeside: 01642 450201
Durham: 0191 3726953
Newcastle: 0191 3726797
Hexham: 01434 671174
Morpeth: 01670 719435
Alnwick: 01665 517285
Leeds: 01138 198262
York: 01904 405195
Harrogate: 01423 788583
Richmond: 01748 889392
Scarborough: 01723 861393
Driffield: 01377 258202
Carlisle: 01228 812864
Lake District: 01539 751473
Home Removals | Business Removals | Overseas Removals | Student Removals | Piano Removals | Local Removals | National Removals
Packing Materials | Removals Insurance | Secure Storage | Short-Term Storage | Long-Term Storage | Self Storage | Man and Van | Vehicle Leasing

Site content and images © Ramshaw Transport 2016. All rights reserved. | Design by designman.co.uk | Photography by stokerphoto.co.uk