63% of adults fear the economic downturn could hurt their chances of home ownership in the next twelve months, according to a major national study by specialist lender Together.
A third of those questioned had never applied for a mortgage with issues such as saving for a deposit (32%) and concerns about affording monthly payments (17%) key roadblocks to homeownership, particularly in the current inflationary environment.
As well as this, 57% of current mortgage holders worry they can’t keep up with mortgage payments as prices continue to rise, as borrowers looking to remortgage as their fixed-rate deals come to an end over the next few years may face some tough choices.
Pete Ball, personal finance CEO at Together, said: “Increasingly, UK households have had to contend with cost-of-living challenges, soaring inflation, rising interest rates and now face the real threat of a recession.
“This has created the perfect storm, leaving both first-time buyers and existing borrowers feeling concerned about their financial futures and what this means for their mortgage costs.”
This widespread concern is evident, as the research found that 9% existing homeowners were considering taking drastic measures to combat affordability, with some even considering selling altogether.
Almost one in three (29%) said they were looking to fix their mortgage payments for longer to cope with inflationary pressures and a further 16% said they were thinking of shopping around for a better mortgage deal.
Even with the new Prime Minister now in place, there is no sign of targeted support for homeowners and first-time buyers – and it is unlikely to materialise anytime soon given the current chaos in Westminster.
Ball added: “While there was some relief in the Energy Plan, with prices capped from next month, a longer-term plan is still very much needed.
“Our research makes clear just how many thousands of potential homeowners could be shut out of the market altogether without adequate support.
“People looking to remortgage after their fixed-rate deals come to an end may also struggle to find the right solution tailored to their needs.
“As a specialist lender, we understand individuals’ specific borrowing needs in these tough times in a way that a formulaic response cannot and will continue to support those customers who don’t necessarily fit the mainstream mould achieve their property ambitions.”
