According to a survey on behalf of payments firm Dye and Durham, which collated views of 2,000 UK homeowners who pay a mortgage, around a third said that they were worried that they would fail to make mortgage repayments in the next year, and this rose to 42% for those aged 18 to 24.

Approximately 36% said they could only afford to pay their mortgage for two months if a job loss impacted the main breadwinner.

Over a third said they thought it would take significantly longer to pay off their mortgage than anticipated and a further third said they expected to delay home renovation or improvement.

Martha Vallance, chief operating officer for Dye and Durham, said: “The effects of high interest rates, energy bills and the increased cost of living overall cannot be underestimated. Our survey data shows Britons are extremely concerned about both their short and long-term future and have reduced spending, raided savings and are delaying major purchases.”

Economic uncertainty key concern for borrowers

The report also said that economic uncertainty was a key concern for borrowers with 69% concerned about financial future for themselves and their families.

Around 66% said they were worried that their children and grandchildren would be unable to get on the property ladder due to affordability.

Meanwhile, 43% said they had sold personal items to manage household budgets and a quarter said they had gone into their savings to cover day-to-day expenses.

Paul Clarke, UK Product Lead, Dye & Durham adds: “For those concerned about making mortgage payments, seek advice from a mortgage advisor or your lender as help is available. It may be possible to secure a mortgage holiday or switch to interest-only payments for a temporary period.

“Selling a property can take a minimum of two to three months from sale agreed to completion, so for those considering downsizing to minimise mortgage commitments, don’t delay consulting an estate agent or legal conveyancer for advice.”