Bank of England governor, Mark Carney, has warned that consumers are spending more on credit cards than ever. The bank puts the record spending levels at £571m in the last month. The Bank’s stability report showed that in the second quarter of 2016, the ratio of debt to income was 133%. Because of this, the rules on riskty mortgage lending would remain the same as they have been for the past two years.
Key Takeaways:
- The governor of the Bank of England, Mark Carney, has issued a warning about the high level of debt amongst UK households.
- Credit card lending is at record levels, up £571m in the last month.
- Unsecured debt is rising at its fastest pace in 11 years.
“In general the outlook for UK financial stability after the Brexit vote “remains challenging””