"There is a high probability that this £100 increase in monthly bills will be crystalised for many households in the coming months, and this is only going to increase the financial pressure."
48% of people said they’re concerned about missing their mortgage repayments due to the current cost-of-living crisis, up from 37% in 2021, according to new research from MetLife UK.
42% have no savings to fall back on if they found themselves unable to pay their mortgage, up from 40% in 2021, and 71% would be unable to cover their mortgage repayments for more than two months, leaving nearly three-quarters of people exposed if they weren’t earning their usual income.
Only one in ten people were aware that there are protection policies available specifically for their mortgage repayments.
Separate research from Pepper Money found that 71% of people are concerned about their financial situation as a direct result of the cost-of-living crisis.
According to the tudy, more than three quarters (76%) of adults now track their bills at least once a month, up from 67% when the research was conducted last year. 76% of respondents said a £100 increase in their monthly bills would have a significant impact on their finances.
With this in mind, 37% of UK adults say that their current financial situation is negatively impacting their mental health, and 81% think the economic environment will make it harder for them to get a mortgage.
Rich Horner, head of individual protection at MetLife UK, commented: “The Chancellor made it crystal clear that tough decisions are necessary to keep mortgage rates down. However, there are still real pressure points affecting potential first-time buyers and current homeowners that need addressing quickly.
“For those with a mortgage, many are starting to see their monthly repayments rise in line with rising interest rates. With the uncertainty around how high interest rates will go and the ongoing pressures on the cost of living, the worry of meeting payments can be daunting. Yet just 1 in 10 are aware that for a relatively small monthly fee, they can ensure they have protection in place to cover their mortgage repayments – often the largest monthly outgoing for many."
Paul Adams, sales director at Pepper Money, said: “The cost-of-living crisis is impacting everyone and is putting severe financial pressure on the majority of the population. Our research, in association with YouGov, has found that 71% are concerned about their financial situation as a direct result of the crisis, while 76% say a £100 increase in their monthly bills would have a significant impact on their finances.
“Given this research was held shortly before the energy price cap was raised on 1st October, there is a high probability that this £100 increase in monthly bills will be crystalised for many households in the coming months, and this is only going to increase the financial pressure.
“Set against this backdrop, and in an environment of increased rates, as a result of the September mini-budget. Mortgage advisers have a big opportunity to positively impact the lives of their customers. A mortgage is the largest monthly financial commitment for most people and good advice can help people potentially save thousands."
