Almost a quarter (23%) of mortgage holders have used credit in the last 12 months to ensure that they can make mortgage payments, StepChange Debt Charity has found.

Following UK Finance data which revealed today that homeowner mortgages in arrears rose by 7% in Q4 2023, StepChange found that 44% of mortgage holders are finding it difficult to keep up with bills and credit commitments.

This is an 8% increase from September 2023.

Furthermore, over a third (35%) of mortgage holders are showing at least one sign of financial difficulty, with one in five (21%) stating they have used savings in the last 12 months to ensure they can make mortgage payments.

StepChange said that the Government must be ready to intervene with further support for struggling borrowers, as interest rates remain high and many households are yet to secure a new mortgage deal since rates started rising.

Chief client officer at StepChange Debt Charity, Richard Lane, said: "We know from our own clients that people tend to prioritise their mortgage and fall behind in other areas when they’re struggling to make ends meet, so it’s especially worrying to see mortgage arrears creeping up across the UK.

"Higher mortgage payments and wider cost of living pressures have eroded people’s ability to cope financially, so it’s not surprising that more are turning to credit or savings to cover essential housing costs. However, with no indication of when rates might come down, people risk finding themselves trapped in long-term problem debt as that credit ultimately becomes unsustainable.

"We would urge the government to consider how it can step in to help those in financial difficulty now and in the near future. All government cost of living support is due to end in March, removing an essential safety net for low-income households. The mortgage charter was introduced last year in response to high rates putting pressure on households – updating and extending these measures could be beneficial in supporting struggling mortgagers."

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