Real data, not predictions or models

This report is based on real Experian-owned data, comparing values from October 2022 to August 2023, rather than outputs from analytics models or predictive models. By avoiding interpretation, we are able to provide the most unbiased view of affordability possible at a given point in time.

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In this report, we look at key affordability trends in detail, providing insights on specific customer segments and areas of the UK. The key findings are:

Inside spread of Affordability Update report
  • Consumer income is outpacing inflation

    This is easing financial pressures for many

  • Most consumers remain financially resilient

    This is despite average mortgage payments rising

  • Households have seen average ‘contracted payments’ increase

    But delinquency rates remain low and stable

  • Financial vulnerability has increased

    Amongst specific consumer segments

A sneak peek into...

Experian Affordability Update - Q3 2023

Most consumers remain financially resilient, despite average mortgage payments rising

Average mortgage repayments have increased by 11% across the UK to an average of £1,174. However, our data also shows that most consumers are able to absorb these increasing costs, with delinquency rates remaining low and stable (up fractionally to 0.18% from a historical norm of 0.14%), although mortgage arrears still remain an issue in the market.

Graph showing that rising mortgage payments have been fairly consistent across all households

Mortgage cost increases by consumer segment

When we look at the way rising mortgage costs have impacted different types of consumers, the results are more striking. We can see that “golden age” consumers on fixed pensions have been among the most affected – seeing a 13% increase in mortgage costs. At the other end of the spectrum, the financially savvy “established investors” have seen cost increases of only 9%.

The largest increases in mortgage costs (13%) is for consumers in the “mutual resources” FSS category. These are described as mid-range-income families whose financial position is enhanced by the support of extended family or the wider community.

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Read our paper to find out the key consumer affordability trends in detail, deep insights on specific customer segments, and understand the areas of the UK that are particularly affected by the trends.

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