One in 12 mortgage holders are estimated to have missed essential payments in the month to early March. In the month to March 8, an estimated 8.1% of mortgage holders missed essential payments such as housing, utility bill, credit card or loan payments.
This is the third highest level that Which? has recorded for mortgage holders since its data tracking started in April 2020. One man from the east of England told researchers: “The cost of essential everyday items is still rising. Council tax is rising. I cannot get a pay rise.”
But a man from north-west England said that he expects his financial situation to improve as “both myself and my wife are due pay rises in the coming months”. Rocio Concha, Which? director of policy and advocacy, said: “It’s very worrying that missed payment levels are still so high – with almost one in 10 mortgage holders missing a household payment in a single month.
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“We’d encourage anyone who’s struggling to seek free debt advice and reach out to their mortgage provider or landlord for help.” Around 2,000 people across the UK were surveyed by Yonder for Which? in the study, which has been released today (Wednesday).
Missed payment rates were also high among renters – with one in seven (14 per cent) renters missing essential payments in the month to March 8. Households who own their home outright were less likely to miss payments, with an estimated 1.6 per cent experiencing this, down from 2.8 per cent in February.
And 54 per cent reported making at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the past month. And worryingly, three in 10 suspect their situation will get WORSE before the end of the calendar year this year.