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The financial position of British households: evidence from the 2013 NMG Consulting survey

Author

Listed:
  • Philip Bunn

    (Bank of England)

  • May Rostom

    (Bank of England)

  • Silvia Domit

    (Bank of England)

  • Nicola Worrow

    (Bank of England)

  • Laura Piscitelli

    (Bank of England)

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

  • Philip Bunn & May Rostom & Silvia Domit & Nicola Worrow & Laura Piscitelli, 2013. "The financial position of British households: evidence from the 2013 NMG Consulting survey," Bank of England Quarterly Bulletin, Bank of England, vol. 53(4), pages 351-360.
    • Handle: RePEc:boe:qbullt:0122
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    References listed on IDEAS

    as
    1. Richard Button & Silvia Pezzini & Neil Rossiter, 2010. "Understanding the price of new lending to households," Bank of England Quarterly Bulletin, Bank of England, vol. 50(3), pages 172-182.
    2. Philip Bunn & Jeanne Le Roux & Robert Johnson & Michael McLeay, 2012. "Influences on household spending: evidence from the 2012 NMG Consulting survey," Bank of England Quarterly Bulletin, Bank of England, vol. 52(4), pages 332-342.
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    Cited by:

    1. Gareth Anderson & Philip Bunn & Alice Pugh & Arzu Uluc, 2014. "The potential impact of higher interest rates on the household sector: evidence from the 2014 NMG Consulting survey," Bank of England Quarterly Bulletin, Bank of England, vol. 54(4), pages 419-433.
    2. Cumming, Fergus, 2022. "Mortgage cash-flows and employment," European Economic Review, Elsevier, vol. 144(C).
    3. Philip Bunn & May Rostom, 2014. "Household debt and spending," Bank of England Quarterly Bulletin, Bank of England, vol. 54(3), pages 304-315.
    4. Philip Bunn & May Rostom, 2015. "Household debt and spending in the United Kingdom," Bank of England working papers 554, Bank of England.
    5. Fergus Cumming, 2018. "Mortgages, cash-flow shocks and local employment," Bank of England working papers 773, Bank of England.

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