Economic uncertainty is taking toll on UK mortgage holders

More than half of UK mortgage holders are struggling with their mental health as the cost of living crisis hits home, according to recent research.

According to a new survey of 2,000 UK homeowners who pay a mortgage, the ongoing cost of living crisis is affecting the mental health of 56 per cent of mortgage holders.

The research, conducted by independent market research firm Danebury Research on behalf of global technology leader Dye & Durham, reveals they have genuine concerns over their financial situation and that of their families.

Nearly a third (30 per cent) say they are worried they will fail to make mortgage repayments within the next year, with those aged 18 to 24 expressing particular concern (42 per cent).

In addition, more than a third (36 per cent) said they could only afford to continue paying their mortgage for two months if a job loss affected the main breadwinner.

This means repossessions could become a rising risk for the UK’s property market.

Economic uncertainty is weighing on the minds of property owners with 69 per cent concerned about the financial future for themselves and their family.

Two thirds say they are worried their children or grandchildren will be unable to get on the property ladder due to affordability.

Survey respondents confirmed they (43 per cent) have taken to selling personal items to better manage household budgets and more than half (55 per cent) have made personal sacrifices so their family and children are not impacted – for example by eating less, or not buying clothing or shoes for themselves.

Already to date, 25 per cent of respondents have had to delve into savings to put cash towards day-to-day expenses such as food or heating.

Other findings included more than a third expecting to take significantly longer to pay off their mortgage than originally anticipated; one in three expecting to delay home renovation or improvement projects and almost one fifth expecting to delay retirement plans.

Paul Clarke, UK product lead, Dye & Durham adds: “For those concerned about making mortgage payments, seek advice from a mortgage advisor or your lender as help is available.

“It may be possible to secure a mortgage holiday or switch to interest-only payments for a temporary period.

“Selling a property can take a minimum of two-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.”