Most affected are those with adverse credit histories
The prolonged cost-of-living crisis and persistent inflation are adversely affecting the financial and mental well-being of UK consumers, particularly those with adverse credit histories.
According to a recent study by Bluestone Mortgages, 41% feel financially worse off than they were a year ago, with those aged 35 to 44 experiencing the most significant strain, at 47%. In contrast, only 30% of the younger demographic, aged 18 to 24, reported a similar downturn.
The research further highlights the detrimental effects of financial difficulties on mental health, with a staggering 79% of participants acknowledging a negative impact.
Women report a more severe effect, with 87% feeling the strain, compared to 69% of men. The situation is also particularly dire for individuals with adverse credit histories, where nearly all, 96%, feel their financial state is harming their mental well-being.
“As the ongoing cost-of-living pressures and sticky inflation continue to take their toll, we expect to see a rise in vulnerable customers,” said Ryan Davies (pictured), strategy director at Bluestone Mortgages.
“This research highlights a clear link between people’s financial situation and their mental health, and so it’s more important than ever that customers are provided with the support they need and deserve to rebuild their financial resilience.
“The best thing customers can do is seek support from a mortgage lender or speak with a broker to understand the tailored options available to suit their circumstances. It’s our responsibility as an industry to help these customers during these challenging times and support them in their homeownership goals.”
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