Almost one in four (23%) mortgage holders have used credit in the past 12 months to ensure they can make mortgage payments, according to StepChange.
A study conducted by YouGov on behalf of the charity revealed that 44% of mortgage holders were finding it difficult to keep up with bills and credit commitments.
This figure marked an 8% increase, compared to 36% in September 2023.
In addition, 35% of mortgage holders showed at least one sign of financial difficulty – with 21% forced to utilise their savings to make mortgage repayments in the past 12 months.
With interest rates remaining high, and there still being many households yet to secure a new mortgage deal since rates started rising, StepChange said the Government must be ready to intervene with further support for struggling borrowers.
Richard Lane, chief client officer at StepChange Debt Charity, said: “We know from our own clients that people tend to prioritise their mortgage and fall behind in other areas when they’re struggling to make ends meet, so it’s especially worrying to see mortgage arrears creeping up across the UK.
“Higher mortgage payments and wider cost of living pressures have eroded people’s ability to cope financially, so it’s not surprising that more are turning to credit or savings to cover essential housing costs.
“However, with no indication of when rates might come down, people risk finding themselves trapped in long-term problem debt as that credit ultimately becomes unsustainable.”
He added: “We would urge the government to consider how it can step in to help those in financial difficulty now and in the near future.
“All Government cost of living support is due to end in March, removing an essential safety net for low-income households.
“The Mortgage Charter was introduced last year in response to high rates putting pressure on households – updating and extending these measures could be beneficial in supporting struggling mortgagers.
“Charities like StepChange offer free and impartial advice if you’re experiencing problem debt. Our new homeowner hub provides a one-stop-shop for mortgage-based advice and support.”
