Over one in 10 mortgage holders are not confident in their ability to meet their mortgage repayments over the coming months, Compare the Market’s latest ‘Household Financial Confidence Tracker’ has revealed.
57% of mortgage holders said they were unlikely to switch their mortgage to a new deal while rates remain at current levels.
However, if the Bank of England had lowered rates, 46% of mortgage holders said they would have been likely to shop around for a new deal.
Many households recognised the importance of the Bank of England’s rate when it comes to their outgoings, with 39% keeping track of the base rate when managing their finances, rising to 51% of 25 to 34-year-olds.
Nearly half of households (46%) felt more pessimistic about their finances in comparison to this time last year.
Due to the higher cost of living, one in four people (26%) said they did not feel confident in managing their household bills in the coming weeks, with many people cutting back on non-essential expenses.
These included eating out (49%), buying clothes (41%), holidays (37%), leisure activities (34%), large purchases like cars or computers (32%), and subscriptions (26%).
More than one in four (27%) have also reduced the amount of money they are able to save each month, while a similar number (26%) are unable to save any money each month.
Guy Anker, money expert at Compare the Market, said: “The good news is some mortgage providers have been lowering mortgage rates on their fixes and trackers in recent months, creating opportunities for some to switch to a more affordable deal.
“Standard variable rate (SVR) mortgages, which most people revert to when a fix or tracker ends, tend to be very expensive.”
