The level of Britons’ consumer debt has risen to over £200bn ($262bn), with the increasing level of household borrowing combined with macroeconomic weakness putting pressure on loan repayments, according to Moody’s. “Household indebtedness is now at its highest levels since before the financial crisis and will continue to rise as households struggle to pay their bills in a weak economy,” said Mark Chandler, head of UK sovereign
The level of Britons’ consumer debt has risen to over £200bn ($262bn), with the increasing level of household borrowing combined with macroeconomic weakness putting pressure on loan repayments, according to Moody’s. Accordingly, the ratings agency has altered its collateral forecast for two of the UK’s structured finance sectors as Britons' ability to meet interest payments on loans declines: asset-backed securities and retail mortgage-backed securities, which it now rates negative.