Seven Million UK Households Struggle With Rent and Mortgage Bills
A shocking new survey from consumer watchdog Which? reveals that around seven million UK households are struggling to keep up with rent or mortgage payments. The culprit? Rising borrowing costs and looming higher remortgage rates hitting millions by the end of 2024.
Nearly Half of Renters and Mortgage Payers Feeling the Pinch
The survey of 4,000 Brits found that 46% of households with mortgages or renting face serious payment challenges. That’s nearly half of the nation’s renters and homeowners battling to stay afloat.
It’s not just low earners feeling the squeeze. Even those with decent incomes are worried. A man from Northern England earning £55,000–£79,999 admits he’s anxious about covering his mortgage when it renews later this year amid further interest hikes.
Renters Brace for Rent Rises as Landlords Pass on Costs
Renters are also caught in the storm. With landlords facing heftier mortgage repayments, many fear rent hikes soon. This could push struggling tenants to the brink, sparking widespread financial stress.
Saving Accounts Drained, Stress Levels Soar
- 31% of mortgage holders are dipping into savings to cover housing costs—the highest among all groups.
- 27% of private renters and 25% of social renters are doing the same, eroding their emergency funds.
- Over half of all these groups say they feel overwhelmed and out of control financially.
Which? Urges Banks to Step Up Customer Support
With millions facing tough choices, Which? warns banks and mortgage lenders must be ready to help. They call for better-resourced customer support via phone, email, and live chat.
If you’re worried about payments, experts advise contacting your lender immediately—it won’t harm your credit score. Options like temporary mortgage holidays or extending terms could ease the burden. Renters should also speak to landlords for possible temporary relief.
The Financial Conduct Authority’s new Consumer Duty means firms must now deliver better service or risk regulatory penalties.
Rocio Concha, Which? Director of Policy and Advocacy, said: “Banks and mortgage lenders must ensure they are fully staffed and properly prepared to support customers remortgaging or struggling to make ends meet.”
