Revealed – how many UK homeowners are worried about mortgage repayments

Cost-of-living crisis also affecting the mental health of many mortgage holders

Revealed – how many UK homeowners are worried about mortgage repayments

Nearly a third, or 30%, of homeowners in the UK said they were worried that they would fail to make mortgage repayments within the next year due to the ongoing cost-of-living crisis, according to technology firm Dye & Durham.

Citing the results of its commissioned survey, the software provider also reported that more than a third, or 36%, said they could only afford to continue paying their mortgage for two months if a job loss affected the main breadwinner, meaning repossessions could become a rising risk for the UK’s property market.

One in eight, or 12%, of UK homeowners – and nearly one in five, or 19%, of Londoners – expect to delay selling or buying a home this year, while 35% expect to delay home renovation or improvement projects.

The new survey of 2,000 UK homeowners who pay a mortgage, conducted by independent market research firm Danebury Research on behalf of Dye & Durham, also revealed that 36% of respondents expect it will take significantly longer to pay off their mortgage than originally anticipated if interest rates continue to rise in the next year.

It was also found that the cost-of-living crisis is affecting the mental health of the majority, or 56%, of UK mortgage holders, who have genuine concerns over their financial situation and that of their families. 

“The effects of high interest rates, energy bills, and the increased cost-of-living overall cannot be underestimated,” Martha Vallance, chief operating officer at Dye & Durham, commented. “Our survey data shows people in the UK are extremely concerned about both their short- and long-term future and have reduced spending, raided savings, and are delaying major purchases.”

Paul Clarke (pictured), UK product lead at Dye & Durham, advised those concerned about making mortgage payments to seek advice from a mortgage advisor or their lender for support.

“It may be possible to secure a mortgage holiday or switch to interest-only payments for a temporary period,” Clarke said. “Selling a property can take a minimum of two to three months from sale agreed to completion, so for those considering downsizing to minimise mortgage commitments, don’t delay consulting an estate agent or legal conveyancer for advice.”

Clarke also explained that with transaction volumes likely to be reduced this year due to consumer concerns over the cost-of-living crisis, professionals now have the opportunity to take a closer look at their operations and evaluate ways to improve efficiency for both their businesses and their customers.

“By improving their processes and workflows now to support a more agile approach to transactions and practice management, it will provide a real advantage once the market bounces back to previous levels,” he said.

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