One in 10 mortgage holders in the UK (10%) have revealed that they won’t be able to afford their mortgage payments if the cost of living continues to rise, according to new findings published by research agency, Opinium.
The research also indicated that over half (56%) of homeowners believe the current cost of living crisis will make it more of a struggle to pay their mortgage.
Opinium conducted an online survey last week of 2,000 UK adults, 477 of whom have a mortgage or loan on their property. It found that two in five (41%) respondents will need to make cuts elsewhere to be able to pay their mortgage, while another 8% said they will need to borrow money from family and friends.
Two fifths (40%) of mortgage holders currently have a fixed term mortgage due to end in the next two years. For those whose deal is coming to an end, and if rates continue to rise, over two in five (43%) mortgage holders will need to make cutbacks to be able to cover their monthly payments.
Head of financial services research at Opinium, Alexa Nightingale, commented: “With the mortgage market in disarray following the latest interest rate rise announcement from the Bank of England, many homeowners will be feeling deeply concerned about being able to afford their mortgages – particularly those who are coming to the end of fixed term deals in the near future.
“Despite the recent announcement from Jeremy Hunt that lenders are to give mortgage-holders more flexibility to help deal with rising rates, including implementing a 12-month minimum term before repossessing homes and allowing borrowers to extend their loan term, many will feel this doesn’t go far enough.”
Opinium’s findings also suggested that one in seven (13%) respondents would need to ask for a mortgage holiday while one in 10 (10%) would need to temporarily switch to an interest only mortgage. The research also indicated that 6% would need to sell their home.
Nightingale added: “Given how many consumers could struggle to cover their mortgage payments, or even have to sell their home if things continue the way they are, support from the Government, as well as these options agreed with lenders, cannot some soon enough.”
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories