A "relatively benign" rise in interest rates still has the potential to double the number of households facing debt problems, a think tank has said.
A report by the Resolution Foundation said the UK had failed to deal with a "debt overhang", leaving the economy vulnerable to rate rises. It predicted that by 2018, 1.1 million households could be in "debt peril", compared with 600,000 now. This means more than half of their post-tax income goes on repaying debt, the BBC reports. It also suggested that households spending more than one third of their income on mortgage repayments could rise from 1.1 million to 2.3 million by 2018, equating to about one in four households with a mortgage. > Read: Households' pessimism about fina...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
