Posted by Rana Zubair On July 9th 2023
According to a recent survey conducted among 2,000 British citizens, it has come to light that a significant number of homeowners are currently facing difficulties in covering their mortgage payments due to the prevailing economic challenges. The survey revealed that a staggering 56% of homeowners find themselves in this predicament. This alarming statistic highlights the urgent need for homeowners to find effective solutions to manage their mortgage costs and avoid potential financial hardships.
In an effort to alleviate the burden of their mortgage payments, a considerable 41% of individuals have expressed their intention to make necessary spending adjustments. Recognizing the importance of financial support during these tough times, 8% of homeowners are also considering seeking assistance from their family and friends. This emphasizes the role of close relationships and social networks in times of financial strain.
Notably, the survey also revealed that out of those who own a home, a significant 40% currently have fixed-term mortgages that will mature within the next two years. This finding is particularly significant as it implies that a substantial number of homeowners will soon face the potential challenge of meeting their mortgage obligations.
In light of this, it is crucial to consider the potential impact of rising interest rates on these individuals. If interest rates continue to increase, a concerning 43% of homeowners with fixed-term mortgages may find themselves in a position where they need to make significant sacrifices to fulfill their mortgage obligations. This highlights the vulnerability of homeowners to external economic factors and emphasizes the importance of proactive financial planning.
Given the current economic climate and the challenges it presents, it is imperative for homeowners to explore effective ways to manage their mortgage payments. Seeking professional advice and guidance from financial experts can prove to be invaluable in navigating these uncertain times and ensuring sustainable homeownership. By taking proactive steps and exploring available options, homeowners can work towards securing their residential mortgages and safeguarding their financial well-being.
Around 13% of homeowners anticipate requesting a mortgage holiday, and 10% may temporarily switch to interest-only mortgages. Surprisingly, only 6% indicated that they would consider selling their house.
Furthermore, 37% of homeowners have either already paid or would consider paying an early mortgage repayment fee to secure a better fixed rate. On average, this fee amounts to £1,864.
Approximately 22% of respondents have already engaged or plan to engage their mortgage brokers to explore their options in response to the cost-of-living crisis.
Alexa Nightingale, the head of financial services at Opinium, expressed her opinion on the situation. While Jeremy Hunt’s announcement that lenders are expected to offer leniency.