The average household that took out a mortgage in 2021 faces a 3% reduction this year in the amount of disposable income it has left over after home loan, credit commitments and living costs, according to trade association UK Finance.
The cost-of-living squeeze will be felt particularly acutely in lower-income brackets, which have around half the spare income of those in higher brackets, even before cost-of-living pressures are factored in, it added.
