A total of 60 per cent of the 4,000 respondents surveyed by Which? were fearful of their financial security and half do not feel ‘in control’ of their money, with one in five taking on extra work to cover utility bills.
Even the mood of those who have paid off their mortgage was concerning, as three in 10 of those who own their home outright said they felt financially stressed on a daily basis.
After fourteen months of consecutive interest rate hikes, both renters and mortgage holders have been hit in the pockets hard. This month Mortgage Solutions reported an average household with a mortgage had £337 left at the end of each month, with that number dropping dramatically to just £137 for renters.
Landlords have, for the most part, continuously upped their rent for over two years, and the average monthly charge now stands at £1,260 – over £200 more than in August 2021, HomeLet’s data shows.
More support needed
Consumer champion Which? is “calling on banks and mortgage lenders to ensure they are ready to properly support high numbers of customers getting in touch.”
It continued: “This includes making sure that customer service support – via phone calls, email and chat functions – is properly staffed and resourced in the months to come.
“The Financial Conduct Authority’s new Consumer Duty, which holds firms in financial services to higher standards of customer service, should mean that customers are supported throughout in a way that meets their financial needs. Companies that fail to do so should expect to face tough action from the regulator.”
Help at hand
Which? advised mortgage borrowers who were concerned about their ability to make mortgage repayments to contact their lender in the first instance, noting that, under the government’s Mortgage Charter, lenders could offer a range of support options depending on individual circumstances – such as a temporary mortgage holiday, switching to interest-only payments or extending the term of your mortgage.
