Financial Times - Credit card debt hits UK mortgage affordability
Credit card debt is cutting into people’s ability to get a mortgage, as high interest rates and living costs have put household finances under strain, brokers have warned.
Outstanding balances on credit cards are rising at an annual rate of 9.9 per cent in the 12 months to March 2024, according to figures released on Tuesday by industry body UK Finance. About half of these (49.8 per cent) incurred interest.
Aaron Strutt, product director at broker Trinity Financial, told Newspage and the Financial Times: “We are speaking to more people with chunky credit card balances. Some of them are trying to consolidate their debt, although they are struggling because of their high debt-to-income ratios.”
Many were unaware of the consequences for their ability to borrow, he added. “They may struggle to get a mortgage, although lenders have different acceptance criteria.”
Click here to read the full story £
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
