More than half have missed a payment more than once
New research from specialist lender Bluestone Mortgages has revealed one in five adults in the UK (18%) have missed a payment, including for utility bills, credit card bills, and tax or loans, in the last 12 months.
The report comes amid rising inflation continuing to push up the cost of living. Among the 9.7 million people who missed a payment in the last 12 months are those who missed a mortgage payment. Seven in ten (71%) missed a credit card payment more than once. More than three-quarters missed a utility payment more than once.
In addition, the results show one in seven (14%) adults in the UK are too embarrassed to seek financial support, while 13% say they would not know where to begin. More than 10% would feel embarrassed to share the state of their finances, and 9% would be worried about the impact on their credit score.
Nearly half (49%) of adults in the UK are concerned about the impact of the current inflationary environment on their ability to pay their mortgage. However, the results show a lack of awareness and understanding of the support options available, with 17% of respondents expressing unawareness of the availability of options from a financial organisation, such as a mortgage lender. A further one-third of respondents (36%) state they are aware but are not informed about how these could help them.
“The ongoing cost-of-living crisis and squeeze on affordability are taking their toll, with one in seven having missed a payment over the last year. This undoubtedly has a knock-on effect on someone’s credit score and can impact their ability to borrow. However, rather than shying away from talking about the state of their finances and ending up in financial difficulty, we must encourage people to seek the help and support they need,” said Reece Beddall, head of sales and marketing at Bluestone Mortgages.
“The mortgage industry has a key role to play in supporting those who are embarrassed to talk about their financial situation. For brokers, this involves creating a safe space for their customers to discuss their unique circumstances and any credit issues, while lenders should place greater emphasis on education to help increase people’s financial awareness. It’s our duty as an industry to signpost customers to the support options available to suit their unique circumstances.”
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