The Money Charity released their debt statistics for May 2023. This month the focus has been on the rising interest rates that are being put in place to try and control inflation. Inflation is going down but it is unclear whether the government will meet their target of 2% by the end of the year. Given the interest rate rises, coupled with the high cost of living and the fact that lenders are reigning in on their lending, it seems that the UK could be facing a mortgage affordability crisis.
Remember that you can view the statistics from last month here in order to compare with the May 2023 debt statistics.
As well as the impending mortgage affordability crisis – for existing mortgage borrowers as well as those who want to get onto the property ladder – The Money Charity also comments that borrowing is becoming less attractive, yet people are having to turn to credit to meet the cost of affording essentials. This is having a major negative effect on peoples’ financial well-being.
If the past year has had a negative impact on your financial situation, or you are facing increasing debt costs over the next few months, feel free to call us for a discussion on what debt solutions could be available to suit your personal situation.