One in six people (16%) would be too embarrassed to seek financial support should they need it, according to research from Bluestone Mortgages.
The findings reveal three in 10 (31%) say they don’t think they would be eligible to receive support, over a fifth (22%) say they wouldn’t even know where to begin, and 11% would be worried about the impact on their credit score.
At a time when nearly a quarter (24%) of UK adults are concerned about their mortgage repayments, the findings also reveal a lack of awareness and understanding of support options available.
Steve Seal, CEO of Bluestone Mortgages, said: “As the cost-of-living crisis continues to intensify, we expect to see a growing cohort of customers locked out of the mainstream mortgage market as they do not fit the ‘vanilla’ criteria.
“For those who find themselves in this situation, it’s important to remember that there is help at hand and early engagement is key.
“While many customers may be embarrassed to speak about the state of their finances, the earlier they can engage, the more tailored support they will receive.
“Whether that be support directly from the lender, or being signposted to a debt adviser who can help them get their finances back on track, it’s important that we as an industry highlight the support options available so that we can deliver a fair customer outcome which takes into account a borrower’s individual situation.”
Furthermore, nearly a third (31%) of those surveyed by Bluestone said they have no awareness or understanding of how a financial organisation such as their lender or energy provider could help them if they ended up in financial hardship.
Over half (52%) say they are not aware of government-backed support services such as MoneyHelper, and three in 10 (29%) are unaware of the support a debit adviser could offer.
Satnam Sidhu, mortgage expert at Haysto, added: “Advisers have a very important role to play to support those who are embarrassed about their financial situation.
“The first task is to create a non-judgmental and safe place for the customer to discuss any life experiences and credit issues.
“Doing this reduces the embarrassment and anxiety levels and helps focus on what the customer wants to achieve.
“Aside from adviser support, there needs to be greater emphasis on education across the industry to help increase financial awareness amongst individuals.
“Many people do not understand the impact of defaults, CCJ’s or debt management plans on their ability to obtain a mortgage.
“At Haysto we strive to address this issue by providing support for individuals so they know and understand their circumstances and options before making any decisions.”
