56% of Homeowners Struggling to Afford Payments as Inflation Continues to Rise

A recent survey has revealed that more than half (56%) of mortgage holders in the UK are finding it increasingly difficult to make their payments due to the ongoing cost-of-living crisis. The research, conducted by Opinium, found that many homeowners are struggling with rising inflation and higher interest rates, which have added to the financial burden.

The survey, which questioned 2,000 people across the UK, found that 10% of mortgage holders feel they won’t be able to afford their home loans if living costs continue to rise. Additionally, 41% of respondents expect to make cuts in other areas of their budget to cover their mortgage payments, with some even planning to borrow money from family or friends.

The situation is particularly concerning for those with fixed-rate mortgages, with 2.4 million homeowners set to see their deals end before the close of 2024. Of those surveyed, 6% said they would be forced to sell their homes if interest rates continue to climb. Others have considered asking for a mortgage holiday or temporarily switching to interest-only mortgages.

Opinium’s Alexa Nightingale commented on the growing anxiety: “With the mortgage market in disarray following the latest interest rate rise, many homeowners will be feeling deeply concerned about being able to afford their mortgages.”

In response to the crisis, the UK government and banks have introduced a “mortgage charter” aimed at providing support for homeowners. Measures include the ability to switch to interest-only mortgages for six months or extend mortgage terms to reduce monthly payments without affecting credit scores or requiring affordability checks.

These initiatives come as a relief for some, but the overall financial outlook for many homeowners remains uncertain as inflation and interest rates continue to rise.