35% struggling to afford rent or mortgage payments, says ONS
More than a third (35%) of adults reported that it was difficult to afford rent or mortgage payments, according to figures released by the Office for National Statistics (ONS).
This rose among those receiving support from charities (57%), in a household with at least one child (47%), receiving benefits or financial support (45%), renting (43%) and who were disabled (41%).
Fewer people with a mortgage (28%) were finding it difficult to keep up with mortgage payments.
Renters had 4.7 higher odds – and mortgage holders 2.0 higher odds – of experiencing financial vulnerability compared with those who owned their home outright.
Those aged 25 to 34 had 3.4 higher odds of experiencing financial vulnerability than those aged 75 and older.
Almost three in 10 (27%) said rent or mortgage costs were causing their cost-of-living to increase.
Karen Noye, mortgage expert at Quilter, said: “Harrowing figures from the Office for National Statistics show that one in four adults in the UK are now experiencing financial vulnerability, illustrating just how many people are struggling to afford even the bare necessities as cost-of-living pressures pile on.”
She added: “There are still a lot of people who are shielded by previous fixed rate mortgage deals.
“As more people’s deals run out and they are faced with the prospect of drastically higher rates, we can expect this figure to increase significantly.
“Given mortgage rates have hit the highest level for 15 years, with the average 2-year fixed mortgage rate reaching 6.6% earlier this week, an increasing number of people will struggle to afford their rising payments.
“The recent Mortgage Charter will give homeowners a bit of breathing space, and it is vital that people stay calm and speak to their lender or mortgage broker if they have any issues.
“Lenders do not want to deal with defaults on their loans and they are there to help in the first instance.”
Article sourced from https://theintermediary.co.uk/2023/07/35-struggling-to-afford-rent-or-mortgage-payments-says-ons/
Mc Daid Mortgages do not accept responsibility for any advice provided or opinions expressed with this article. This is for information purposes only
Your home may be repossessed if you do not keep up repayments on your mortgage
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