The proportion of homeowners with over £300,000 left to pay on their mortgages has nearly doubled over the last seven years.  

The figure rose to 9% from 5% between 2017 and 2024, according to consultancy Broadstone’s analysis of the Financial Conduct Authority’s latest Financial Lives Survey. 

It adds that these levels of “significant” home loan debt are particularly marked in areas where house prices are higher, such as London, where the number jumped to 28% from 17% over the same period. 

The survey also shows that one in seven borrowers, or 14%, had outstanding mortgage debt worth at least four times their annual income. 

This figure lifted from 11% seven years ago, albeit seeing a slight decline from 16% in 2020 and 2022. 

The consultancy points out that the report “uncovers some concerning statistics around homeowners’ financial capabilities”.  

It reports that 22% of homeowners who could have changed their mortgage rate in the last three years — remortgaging, porting, or buying — said they did not compare mortgages from two or more lenders. 

But despite this, 10% of UK borrowers with a residential mortgage or pay part rent/part mortgage, said that a rise of either £1-49 (3%), or £50-99 (7%), in their monthly repayments would mean they “would struggle to meet their payments”. 

Broadstone senior director of risk Paul Matthews says the regulator’s report does not make for “particularly happy reading”. 

Matthews points out: “It is clear that many more homeowners are taking on significant levels of mortgage debt, yet household incomes have not kept pace with the continued rises in house prices.  

“Given lenders typically cap the maximum amount homeowners can borrow at 4.5 times annual household income it is interesting to see that one in seven said their outstanding mortgage debt was over 4x yearly earnings.

He adds: “Moreover, the statistically significant increase in homeowners with over £300,000 in mortgage debt demonstrates the concern over the impact of rising rates in the past few years – especially for homeowners in London who typically hold bigger mortgages. 

“This concern is emphasised by some of the behaviours that the Financial Conduct Authority’s data also uncovered with many failing to shop around for the best deal despite small adjustments in monthly repayments making a significant difference over a full mortgage term.”