New figures reveal a sharp rise in financial pressure on UK mortgage holders, with one in four now resorting to credit to cover their mortgage payments.
UK Finance data released today highlights an 8% year-on-year increase in homeowner mortgage arrears, alongside a striking 39% jump in mortgage possessions.
StepChange Debt Charity’s own client statistics show mortgage arrears averaging £9,657 per client, marking a 68% rise over the past year.
Fresh YouGov polling commissioned by StepChange indicates widespread financial strain, even as interest rates are anticipated to fall.
Among adults with mortgages, 41% report difficulties in managing bills and credit commitments, and 16% have relied on credit, loans, or overdrafts to get to payday, compared to just 11% of the general population.
Richard Lane, chief client officer at StepChange, commented: “Even with an expected fall in the Bank of England’s base rate, we’ve not seen interest rates come down as quickly as they shot up in 2022 – and as we can see among our own clients in problem debt, this has taken its toll.
“Thousands of mortgage holders have faced new fixed rate deals over the past year or two with monthly payments eating up a much larger proportion of their income.
“This has had a knock-on effect on people’s ability to keep up with bills and repay other debts as they prioritise keeping a roof over their heads.
“The effect on private renters can also not be underestimated – many landlords have passed on higher debt servicing costs to tenants, making their rental payments increasingly unaffordable.
“For anyone struggling with ongoing mortgage payments and housing costs, or worried about debt – don’t hesitate to reach out to your creditors and ask for help.
“Mortgage lenders have a regulatory responsibility to support borrowers who’re struggling, and may be able to provide forbearance.
“StepChange can also support with free and impartial debt advice including mortgage debt advice to those in difficulty.”
