A number of UK households are currently carrying mortgage loans of much greater value than their yearly income, according to the Office for National Statistics. More than 1m are now sitting on debt for their residence which is worth more than 4.5 times their yearly salaries. This statistic has fallen in recent years due to the record low interest rates, but has not adjusted like many experts thought it would. This is disconcerting to those within the housing market, as the high probability of a hike in interest rates is looming.

The data from the ONS indicates more than 13% of all households with mortgages were included in the 1m total. The data was from 2013. Two years prior, more than 1.3m households were carrying debt at this level, or 14.5% of households.

The word used by many within the housing market to describe the high levels of debt to income which remain through a period of such low interest rates is “concerning.”

Matthew Whittaker of Resolution Foundation commented on the latest data, saying: “With rate rises back on the agenda ... it’s vital that banks engage with their customers to explain how their mortgage repayments could rise.”

Whilst many households are choosing to move home in order to stop the bleeding and the unbalanced ratio they are currently carrying, some are choosing instead to remortgage their current property. There are still attractive deals available to those willing to do some research. Many lenders are still in a holding pattern as the Bank of England decides when the base rate will be adjusted. However, many of the best deals are now a thing of the past.