A new study from mortgage adviser Alexander Hall has revealed that for most homeowners, their mortgage remains their biggest financial worry, with 60% saying that concerns about repayments have affected their mental health.
The survey of more than 1,000 UK homeowners found that 66% consider their mortgage their most significant financial concern, with many reporting stress, anxiety and sleeplessness linked to repayments and renewals.
The main source of worry was the potential increase in monthly payments at renewal, followed by uncertainty about interest rates, the wider economy, and the risk of falling into arrears.
However, Alexander Hall’s analysis also highlights signs of improvement in the mortgage landscape.
The number of homeowners in arrears fell by 9.1% in Q2 2025 compared with the same period last year, marking a steady decline over four consecutive quarters.
Average monthly mortgage repayments have also eased, now standing at £1,252 – 3.9% lower than a year ago – suggesting a gradual improvement in affordability.
Richard Merret, managing director of Alexander Hall, said: “Mortgages are a substantial financial commitment and it’s understandable that they can be a source of stress for many homeowners. Our research highlights how common it is for people to feel anxious about monthly payments, renewals, and the impact of interest rate fluctuations.
“The positive takeaway is that arrears are falling and affordability is gradually improving.
“Homeowners can take practical steps to manage their mortgage and protect their mental wellbeing, and advisers like us are here to help navigate the complexities of the market and provide tailored support for individual circumstances.”
Alexander Hall said homeowners can help manage both their finances and mental wellbeing by budgeting carefully, planning for future rate changes, seeking professional advice, considering insurance protection, using personal support networks, and prioritising self-care to reduce stress and improve financial decision-making.
