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Quarter of Brits concerned about impact of rate rises on mortgage payments

Quarter of Brits concerned about impact of rate rises on mortgage payments
Shekina Tuahene
Written By:
Shekina Tuahene
Posted:
24/06/2024
Updated:
24/06/2024

A quarter of people with a mortgage are concerned about the impact of rate rises on their payments, a study from an insurer found.

More than half of renters – 51% – were worried about the cost of day-to-day items, as found by the LV= Wealth and Wellbeing report that surveyed 4,000 adults. This was higher than the 40% proportion of all people polled. 

Some 38% of those polled expressed worry about the rising costs of energy bills, while 45% said they could only just afford to pay their bills. 

A tenth said they could not manage to pay their daily bills. 

Compared to the general public, parents with children under the age of 10 were more likely to fall behind with utility bills, at a share of 9% compared to 6%. 

They were also twice as likely to miss credit card or loan payments, at 8% compared to 4%, and miss mortgage or rent payments, at 8% versus 3%. 

Improved financial resilience 

Despite the findings, LV=’s study showed that people’s financial resilience was getting better compared to last year. 

Its wellness tracker improved from a score of +5 in March 2023 to +20 currently.

This was the second quarter in a row that the measurement improved, representing 60% of respondents who were comfortable while 40% were financially struggling. 

Those aged 60 and over appeared to be better equipped to deal with financial challenges than the previous quarter, as their score rose from zero to +7. This was also the biggest change in financial resilience compared to any other age group. 

For people aged 44-59, their financial outlook was the bleakest, as half said they were struggling with finances. 

Some 5% felt their finances would improve in the next three months, while 3% predicted a rise in pension savings. 

David Hynam, chief executive at LV=, said: “As a mutual, our Wealth and Wellbeing research is important to us. It helps us to understand what is impacting people across the UK and informs the support and services on offer to our customers. 

“Although our Wealth and Wellbeing Research Programme shows that fewer people are financially struggling compared to 2023, many are still worried about their finances and what the future holds for them.

“Despite the nation gradually becoming more financially resilient, our data shows that socialising spend has remained stable, as many people are prioritising their everyday living costs.”

Related: One million Brits just £10 a week away from living in poverty