According to a survey on behalf of payments firm Dye and Durham, which collated views of 2,000 UK homeowners who pay a mortgage, around a third said that they were worried that they would fail to make mortgage repayments in the next year, and this rose to 42 per cent for those aged 18 to 24.
Approximately 36 per cent said they could only afford to pay their mortgage for two months if a job loss impacted the main breadwinner.
Around 12 per cent said that they would delay selling or buying a home this year, and this increased to 19 per cent for Londoners.
Over a third said they thought it would take significantly longer to pay off their mortgage than anticipated and a further third said they expected to delay home renovation or improvement.
A fifth said that they expected to delay retirement plans, and this rose to nearly a quarter amongst 45 to 54 year-olds.
Martha Vallance, chief operating officer for Dye and Durham, said: “The effects of high interest rates, energy bills and the increased cost of living overall cannot be underestimated. Our survey data shows Britons are extremely concerned about both their short and long-term future and have reduced spending, raided savings and are delaying major purchases.”
Economic uncertainty key concern for borrowers
The report also said that economic uncertainty was a key concern for borrowers with 69 per cent concerned about financial future for themselves and their families.
Around 66 per cent said they were worried that their children and grandchildren would be unable to get on the property ladder due to affordability.
Around 43 per cent said they had sold personal items to manage household budgets and over half said they had made personal sacrifices and their children were not impacted.
A quarter said they had gone into their savings to cover day-to-day expenses.
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.”
He added: “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,” explains Clarke.
“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.”
