Seven million households struggling to keep up with rent or mortgage
Approximately seven million UK households are struggling to keep up with their rent or mortgage payments, a new survey suggests.
Consumer group Which? asked 4,000 people how they’ve been affected by rising housing costs. Nearly half of households (46%) said they are struggling to stay on top of their mortgage or rent payments. This is equivalent to seven million households across the UK.
Mortgage holders struggling
Bank of England data shows nearly half of all mortgage holders have already seen their monthly payments go up. This equates to about 4.5 million households.
More pain to come
Another 2.1 million households who will see their fixed-rate deals end before the end of 2024 are also facing a hike in their payments, as a result of higher interest rates.
Renters also hit by higher interest rates
People who rent their homes are also being affected by rising interest rates. This is because landlords are putting up rent to cover the rising mortgage costs they’re facing.
One tenant from the South of England with an income of less than £15,000 said:
“I worry about the roof over my head and the fact my rent is about to increase because I cannot afford to pay the increase.”
How people are trying to keep their heads above water
Which? found:
- 31% of mortgage holders, 27% of private renters and 25% of social renters have dipped into their savings
- 45% of mortgage holders are being more careful with their money
- 21% of mortgage holders are working more hours
How money worries are affecting people
The survey also revealed:
- 56% of private renters, 55% of social renters and 52% of mortgage holders are feeling stressed on a daily basis
- 62% of private renters and mortgage holders and 60% of social renters are worried about their financial security
- 56% of private renters and 55% of social renters and mortgage holders said they don’t feel in control of their money
Free debt advice
Rocio Concha from Which? said:
“We'd encourage anyone who's struggling to seek free debt advice and reach out to their mortgage provider or landlord for help.
“Banks and mortgage lenders must also ensure they are fully staffed and properly prepared to properly support customers getting in touch to remortgage or because they are struggling to make ends meet.”
Rebecca Routledge
A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.
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