According to research from The Mortgage Lender (TML), which surveyed over 2,000 people, found that six per cent of people had missed their usual payments, which includes major expenses like rent, mortgage or credit cards.
Around four per cent of adults say they have missed multiple payments, which the lender said shows a “significant proportion” of the population are being financially squeezed.
Over one in 10 18 to 34-year-olds have missed one of their usual payments in the past two years, which is nearly quadruple the figure for over-55s.
Around six per cent of young people said they have missed multiple payments.
The report added that 10 per cent of prospective homebuyers have missed one or more payments in the past two years, which the firm warned could put them at risk of having their mortgage declined.
The average number of payments missed stands at three with almost a third saying they have missed five or more.
Missed credit card payments account nearly half of all payments, 40 per cent said they had missed a utility bill, 27 per cent missed council tax payments, 25 per cent missed rent payments, 23 per cent miss personal loan repayments and seven per cent miss mortgage repayments.
Peter Beaumont, CEO of TML, said: “The past two years have impacted many people’s jobs and salaries, putting a squeeze on household finances, and with the rising cost of living there is even greater pressure on the nation’s finances. This can all lead an individual to miss a regular payment which then could have a knock-on effect on their access to credit down the line.
“In such a volatile economic climate, it’s important that more people are prevented from falling down a rabbit hole of financial difficulty. The lending market needs to become better equipped to deal with the greater quantities of people who are emerging from the pandemic with adverse credit histories.”
He added: “Rather than penalising people for the consequences of an unprecedented event, the industry should be working together to support those who’ve missed payments so that people, especially aspiring homeowners, aren’t locked out of the market.”
