As the cost-of-living crisis continues to squeeze finances, two fifths of adults – the equivalent to 21.9 million people – are worse off by an average of £215 per month compared to 12 months ago, new research from Bluestone Mortgages has revealed.
Collectively, this means that these individuals are worse off by £4.7bn per month.
According to the research from the specialist lender, almost two thirds (64%) of adults are concerned about the impact of the inflationary environment on their ability to afford energy bills.
Similarly, more than half are worried about the impact of being able to afford their weekly food shop (54%) and how the current environment will affect their long-term finances (54%).
The research reveals this affordability squeeze is also having a significant impact on people’s homeownership ambitions.
Of those with a mortgage, nearly half (49%) are concerned about the impact of the inflationary environment on paying it, while over a third (35%) of those looking to buy a home are worried about saving for a deposit.
Additionally, a third (33%) of all UK adults are apprehensive about how the current economic climate will impact their future homebuying prospects.
To help with rising costs amid the cost-of-living crisis, the research revealed that Brits are cutting back on their spending by reducing energy consumption (63%), reducing spending on non-essential items (55%), eating out less often (53%) and changing their product brand or supermarket habits (49%).
Reece Beddall (pictured), sales & marketing director at Bluestone Mortgages, said: “Stubborn inflation combined with the ongoing cost-of-living crisis is creating a new level of affordability concerns across the country, with many potential homebuyers finding it harder to save for a down payment or manage monthly mortgage payments.
“These constraints often eat away at their purchasing power, making it harder for brokers to write business while causing some clients to fall behind on their monthly expenses.
“Minor setbacks like these can trigger high street lenders to turn away a borrower and force them to reconsider their homeownership dreams.
“However, it’s our industry’s duty to remind them that there is help at hand and brokers play a crucial role in helping these customers understand the options available to suit their unique circumstances.”
