The Financial Position of British Households: Evidence from the 2013 NMG Consulting Survey

10 Pages Posted: 16 Jan 2014

See all articles by Philip Bunn

Philip Bunn

Bank of England

May Rostom

Bank of England

Silvia Domit

Bank of England - Monetary Analysis

Nicola Worrow

Bank of England

Laura Piscitelli

Bank of England - Monetary Analysis Division

Date Written: December 20, 2013

Abstract

This article examines recent developments in household balance sheets using disaggregated data from an annual survey carried out by NMG Consulting on behalf of the Bank. The survey indicates that household debt levels remain well above historical averages, but are little changed since last year. While debt servicing costs were also broadly unchanged, a significant increase in interest rates at current incomes may increase financial pressure on households with a mortgage – but the extent to which this is the case will depend crucially on how much incomes pick up before any rise in rates. This issue is explored by considering a number of scenarios for interest rate rises based on survey responses and some simple assumptions that are set out in the article.

Suggested Citation

Bunn, Philip and Rostom, May and Domit, Silvia and Worrow, Nicola and Piscitelli, Laura, The Financial Position of British Households: Evidence from the 2013 NMG Consulting Survey (December 20, 2013). Bank of England Quarterly Bulletin 2013 Q4, Available at SSRN: https://ssrn.com/abstract=2379371

Philip Bunn (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

May Rostom

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Silvia Domit

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Nicola Worrow

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Laura Piscitelli

Bank of England - Monetary Analysis Division ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

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