August 2023
Featured in this insight: Financial services
One in 10 UK mortgage holders will be unable to afford payments if costs continue to rise: A survey has found that 10% of mortgage holders in the UK will not be able to afford their mortgage payments if the cost-of-living crisis continues to worsen.
The survey also found that more than half of the respondents polled (56%) believe that the cost-of-living crisis will mean that paying their mortgage payments will be more of a struggle.
The survey was conducted by Opinium and involved 2,000 UK adults. It found that around 41% of people are planning to make cuts elsewhere in order to afford their payments. The research was carried out to highlight the problems that people are having with their finances due to the cost-of-living crisis.
Further findings highlighted that 8% of mortgage holders in the UK said they will have to borrow money from families or friends to weather the storm, with 6% of the people surveyed reporting they will have to sell their home, due to rising costs.
Rather than continuing to pay and struggle with the payments, 1 in 7 people are likely to ask for a mortgage holiday, found the survey, where payments can be paused for between 1 to 12 months, or are reduced.
Alexa Nightingdale, head of financial services at Opinium, said this: “Given how many consumers struggle to cover their mortgage payments, or even have to sell their home if things continue the way they are, support from the government, as well as these options agreed with lenders, cannot some soon enough”, which reinforces the support that is needed for many mortgage holders.
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