Borrower spending has risen by approximately 38.2% in the past year, according to the latest data from Proprietary Moneyhub.
Proprietary Moneyhub gathered data from users of its open finance platform, and found that over the 12 months from June 2022 to June 2023, for a typical user paying a mortgage, their overall spending rose by £579 on average.
In contrast, wages only grew by an average of 8.4%, which has had a knock-on effect on their ability to save, which fell -35.1% (-£238) over the same period.
Within this cohort, both monthly non-discretionary and discretionary borrower spending were up 13% and 25% respectively.
Utility bills rose 16.6% and mortgage payments rose 6.4%, and were, on average, 21% of net income.
Mark Horwood-James, managing director at Moneyhub Personal Finance Technology, said: “The economic challenges of the last 12 months are impacting everybody.
“We can identify already that Moneyhub users paying a mortgage are seeing their ability to save for the future disappear.
“Their non-discretionary and discretionary spend outstrips their wage growth, so their capacity to save has already dropped by £238 compared to the same period last year.
“Clearly this raises concerns about everyone’s long-term financial health.”
He added: “Enabling individuals and families to understand their whole financial universe and spending patterns will automatically support better decisions being made, which can of course improve their long-term financial outcomes.
“Technology such as Open Banking and Open Finance is now empowering consumers to do just that.
“By aggregating all of their financial accounts into one place and overlaying this with machine-learning technology, access to relevant insights, and unique nudges specific to their circumstances, brands like Moneyhub offer smart and tangible actions which will help improve financial wellness.”
