A significant proportion of UK adults are uncomfortable discussing financial difficulties with their mortgage lenders or landlords, according to a new study conducted by YouGov for StepChange Debt Charity.
The poll found that 39% of those with mortgages or who rent would hesitate to seek financial advice or discuss budget strains with their lender or landlord. The issue appears to be particularly acute for tenants in the private rented sector (PRS).
The research showed that nearly one-third of mortgage holders (30%) would be reluctant to discuss budget pressures with their lenders, a percentage that soars to over half (55%) for renters in the PRS.
Additionally, 18% of those who either rent or have a mortgage were unsure whom they would turn to for financial advice, a number that rises to 25% for private renters and stands at 11% for mortgage holders.
The revelations come amid a backdrop of increasing financial pressures, exacerbated by a steep rise in interest rates and ongoing high inflation. StepChange reports an 18% year-on-year increase in client volumes, reflecting a trend also observed across the wider debt advice sector.
While lenders and social landlords have regulatory obligations to support tenants and borrowers experiencing financial difficulties, such protections are not extended to tenants in the PRS. StepChange Debt Charity, among other free debt advice services, offers resources for those struggling to make rent or mortgage payments.
“We know from our experiences with clients that it can take someone a long time to open up and seek help if they’re struggling with their finances,” said Vikki Brownridge, CEO of StepChange Debt Charity. “It can be especially daunting to discuss debt problems with the people you owe money to.”
She emphasised the regulatory responsibility of lenders and social landlords to assist their financially troubled customers and tenants, stating that such support is “especially vital during the ongoing cost-of-living crisis.”
StepChange recently introduced a new homeowner hub, aimed at providing comprehensive advice for mortgage holders facing financial hardship.
The charity also offers extensive support and information for private and social renters, partnering with organisations like Shelter for additional assistance.
