Money and Mental Health’s latest research outlines the harsh impact of recent interest rate rises on mortgage holders with mental health problems, indicating significant financial and psychological strain.
The charity’s study, incorporating a YouGov poll of 2,150 UK adults, found that individuals with mental health issues are more likely to cut back on essentials and savings to meet mortgage repayments, and are at a heightened risk of falling into arrears. Specifically, 30% of mortgage holders with mental health problems have reduced spending on necessities to keep up with payments, compared to 21% without such issues.
Conor D’Arcy, chief executive of the Money and Mental Health Policy Institute, commented on the findings: “The last year has been extremely tough for many mortgage holders, particularly those with mental health problems… For those coming to the end of a cheap deal in 2024, the outlook can still be a frightening one. That’s why it’s vital that lenders and the government act now to ease the burden on people who are facing impossible decisions just to keep up with their mortgage payments.”
The research also indicates that creditors’ aggressive recovery actions exacerbate stress for those already struggling, sometimes contributing to suicidal feelings. Furthermore, it highlights the lack of awareness among mortgage holders about available support, such as the Mortgage Charter, and the anxiety associated with reaching out for help, particularly for those with mental health problems.
Money and Mental Health advocates for lenders to be more proactive in offering support, ensuring customer service teams are trained to assist those with mental health challenges and making help more accessible through preferred communication channels. The institute urges mortgage lenders to recognise the difficulties faced by customers with mental health problems and to facilitate support that can alleviate the associated stress and assist them in managing their financial obligations.
