StepChange responds to new money and credit figures
30 June 2025
New money and credit data published today by the Bank of England shows net borrowing of mortgage debt by individuals increased by £2.8 billion to £2.1 billion in May.
StepChange Debt Charity says while this could indicate increased confidence from borrowers, who may have been encouraged by falling interest rates, it has been a turbulent year for mortgage holders who continue to face uncertainty in a changing market.
Richard Lane, Chief Client Officer at StepChange Debt Charity, said:
"It’s always encouraging to see signs that things may be stabilising for mortgage holders after a few challenging years. However, with so much ongoing uncertainty, it’s understandable that many people still don’t feel completely secure.
"We also know that those struggling with their mortgage payments face an acute risk of financial hardship. Last year at the charity we saw mortgage arrears rise by an unprecedented 69% to an average of £10,239 per StepChange client. For those grappling with such high levels of debt, the effects are likely to be long-lasting.
"With other cost of living pressures continuing to rise, from energy and water bills to council tax and essential utilities, it’s vital that lenders remain proactive in supporting borrowers in difficulty. That support should include forbearance, alongside signposting to free debt advice as early as possible.
"If you are struggling to keep up with your mortgage payments, or worried about debt, don’t hesitate to reach out to your lender to ask for help. StepChange can also support with free and impartial debt advice."
Notes to editors
- Bank of England Money and Credit data for May 2025 can be found here.