FCA data reveals rising number of borrowers owe over £300,000 as affordability pressures mount
A growing number of UK homeowners are carrying large mortgage balances, analysis of figures from the Financial Conduct Authority (FCA) has revealed.
Data from the regulator’s latest Financial Lives Survey indicates that the share of homeowners with more than £300,000 left on their mortgage has increased from 5% in 2017 to 9% in 2024. The trend is more pronounced in London, where that figure jumped from 17% to 28% over the same period.
The survey also found that 14% of homeowners had mortgage debt amounting to at least four times their annual income — up from 11% in 2017, though slightly below the 16% recorded in both 2020 and 2022.
The FCA flagged concerns over how mortgage holders are managing their financial decisions. More than one in five (22%) of those who could have switched their mortgage in the past three years said they did not compare offers from multiple lenders.
Affordability pressures were also highlighted. Among adults currently buying with a mortgage or using shared ownership schemes, 10% said that even a modest rise in monthly repayments would be difficult to manage. This includes 3% who would struggle with a £1–£49 increase, and 7% who said the same for a £50–£99 rise.
“The figures from the regulator shine a helpful light on trends within the mortgage market,” said Paul Matthews, senior director of risk at financial consultancy Broadstone. “However, they do not make for particularly happy reading.
“It is clear that many more homeowners are taking on significant levels of mortgage debt, yet household incomes have not kept pace with the continued rises in house prices. Given lenders typically cap the maximum amount homeowners can borrow at 4.5 times annual household income, it is interesting to see that one in seven said their outstanding mortgage debt was over four times yearly earnings.
“Moreover, the statistically significant increase in homeowners with over £300,000 in mortgage debt demonstrates the concern over the impact of rising rates in the past few years – especially for homeowners in London who typically hold bigger mortgages.
“This concern is emphasised by some of the behaviours that the FCA’s data also uncovered with many failing to shop around for the best deal despite small adjustments in monthly repayments making a significant difference over a full mortgage term.”
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