Mortgage repayments are biggest source of financial pressure
Mortgage repayments were found to be the biggest source of financial pressure for UK homeowners, with more than half worrying about meeting payments at least once a month, according to research from L&C Mortgages.
L&C surveyed 1,001 UK mortgage holders in July. The results highlighted the extent of stress caused by mortgage repayments.
The study found that 42% of mortgage holders identify their mortgage as the monthly bill that causes them the greatest financial stress, significantly ahead of other household expenses such as food shopping at 20% or energy bills at 17%.
Concerns about repayments remain widespread, as 52% of homeowners said they worry about their mortgage payments at least once a month. Nearly one in five experienced those concerns every week.
David Hollingworth, associate director at L&C Mortgages, put forth tips for borrowers, suggesting brokers could engage in conversations about fixing rates, switching to an interest-only mortgage, or extending their payment terms.
For many households, mortgage repayments represented one of their largest monthly outgoings. Almost half of mortgage holders surveyed said they pay between £500 and £999 per month, while 39% pay £1,000 or more. Within that group, 12% faced monthly repayments of at least £1,500.
Hollingworth commented: “With so much uncertainty and volatility, household finances are under pressure. With concern over cost of living rises and the chunk of disposable income taken up by mortgage payments, it’s perhaps no surprise that they are top of the financial worry list for many mortgage holders.
“The good news is that there are often steps borrowers can take to reduce their monthly payments or better manage their mortgage costs. Reviewing your deal before it ends and understanding the options available could make a meaningful difference.”
