People face surge in household debts in next five years – study

Mounting mortgage and other domestic costs will hit families hard if interest rates rise

Britons will spend almost a third more on their mortgages and other household debts over the next five years, according to new data, sparking fears many may struggle to cope with mounting costs if interest rates rise as predicted.

The projection, revealed by a freedom of information request to the Office for Budget Responsibility, found household debt servicing costs were set to climb 29% by 2023, the vast majority of which are likely to be mortgages.

Inflation is when prices rise. Deflation is the opposite - price decreases over time - but inflation is far more common.