You are here: Home - Mortgages - Buy To Let - News -

Almost a fifth of people hit by rent or mortgage payment rises in last six months

Written by: Shekina Tuahene
Nearly a fifth of UK adults have seen either their rent or mortgage payments rise over a six-month period, according to data from the financial watchdog.

The Financial Lives survey conducted by the Financial Conduct Authority (FCA) found that in the six months to January, 18% of the 5,286 respondents had seen their rent or mortgage costs increase. 

This was a recontact survey and followed its initial Financial Lives survey completed in May last year. The regulator said it wanted to understand the impact of the cost of living on people, as well as provide insight both for itself and interested parties. 

Within the cohort of respondents with a mortgage, 29% saw payment increases in six months and 34% of renters saw a rise. 

The FCA said this equated to 8% of mortgage holders faced with higher monthly payments and a tenth of renters. 

The survey revealed that 11% of people, equating to 5.6m UK adults, had missed at least three domestic bills or credit payments in the six-month period. 

The proportion of people who felt meeting these commitments was a heavy burden rose from 15% to 21%. According to the survey, three quarters of respondents said the burden had increased over the six-month period. 

Impact on well-being 

The survey revealed that financial burdens were impacting the mental wellbeing of respondents, with 54% admitting to feeling more anxious or stressed. 

Nearly a third (28%) said they had lost sleep, while almost a quarter revealed they suffered with their mental health. A further 11% said they avoided speaking to lenders or put off dealing with financial matters. 

Sheldon Mills, executive director of consumers and competition at the FCA, said: “Our research highlights the real impact the rising cost of living is having on people’s ability to keep up with their bills, although we are pleased to see that people have been accessing help and advice.  

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week