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The Guardian - UK
The Guardian - UK
Business
Kalyeena Makortoff Banking correspondent

Bank of England flags concerns over longer mortgages and rise in credit card use

Two people, wearing shorts and T-shirts, inspect a property advert in an estate agent window in Swanage, Dorset.
People viewing property adverts in Swanage, Dorset. There has been a rise in homebuyers taking out mortgages lasting 35 years or more. Photograph: Geoffrey Swaine/Shutterstock

Consumers are taking longer mortgages and spending more on credit cards in an attempt to adapt to higher interest rates and living costs, potentially storing up debt troubles in future, the Bank of England has said.

The central bank’s financial policy committee (FPC), which keeps tabs on the health of the UK financial system, has seen evidence over the last three months of some households increasingly relying on credit cards to make ends meet.

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