The Opinium survey of 2,000 respondents from Bluestone revealed almost two thirds of people are concerned about the impact of the inflationary environment on their ability to afford energy bills.
More than half are worried about the impact of being able to afford their weekly food shop and how the current environment will affect their long-term finances.
Homeownership ambitions are being curtailed with nearly half of mortgage holders concerned about how inflation might impact future payments. Over a third of those looking to buy a home are worried about saving for a deposit and a third of respondents are apprehensive about how the current economic climate will impact their future homebuying prospects.
Brits are economising at the moment with most, or 63 per cent, reducing their energy consumption, and 55 per cent slashing spending on leisure and hobbies. Over half eat out less often with 51 per cent going out less often overall – and almost half have adjusted their product brand or supermarket shopping habits to economise.
Cost of living crisis creating affordability concerns
Reece Beddall, sales and marketing director, Bluestone Mortgages, said: “Stubborn inflation combined with the ongoing cost of living crisis is creating a new level of affordability concerns across the country, with many potential homebuyers finding it harder to save for a down payment or manage monthly mortgage payments.
“These constraints often eat away at their purchasing power, making it harder for brokers to write business while causing some clients to fall behind on their monthly expenses. Minor setbacks like these can trigger high street lenders to turn away a borrower and force them to reconsider their homeownership dreams. However, it’s our industry’s duty to remind them that there is help at hand and brokers play a crucial role in helping these customers understand the options available to suit their unique circumstances.”
Specialist lender Bluestone Mortgages hit £2bn in new originations in September and expects to hit its next billion milestone more quickly utilising Shawbrook’s capital base and the improving market conditions.
The lender plans further product development in the next six to 12 months around affordability and helping first-time buyers, aiming to launch at the end of this year and beginning of next.