Are Remain voters better with mortgages?

Even though inflation is rapidly reducing, mortgage rates may not be falling fast enough – especially for some home buyers who are struggling with payments. Some of the cheapest mortgage deals on offer have been withdrawn as lenders back away from over demand, and as they are spooked by raising swap rates after rumours have swirled about the £40 billion that Rachel Reeves wants to find in the Halloween budget this year. 

Read more: Borrowing costs rise as Reeves budget fears spread 

Although the cost-of-living crisis is easing in some areas, homeowners with mortgages in the UK continue to feel significant financial pressure, according to a new YouGov survey. The survey report found that 24% of mortgage holders report difficulty meeting their current payments, a much better picture than the 35% last year, suggesting some stabilisation. However, mortgage clients aren’t that confident – fears about the future remain, with 31% expecting to struggle with payments within the next year. 

This unease reflects shifting economic conditions, with some respondents anticipating further challenges despite improved affordability in 2024. 

The survey reveals that nearly 49% of mortgage holders currently find it easy to afford their payments, a significant improvement from 38% in June 2023. Yet, the gap between those managing payments comfortably now and those worried about the future signals lingering uncertainty in household finances​. 

The age group distribution in the report suggests that mortgage stress is generally spread across all demographics, though older homeowners (50-64) report slightly less financial strain than younger groups. Meanwhile, regionally, people in areas like London and the South show greater anxiety about future mortgage affordability compared to those in the Midlands or the North. 

Read more: Could Reeves shutter one million rental homes? 

Adding to these worries, renters are also facing mounting financial pressures, making housing affordability a widespread issue across tenures. The survey highlights that renters’ concerns have not eased as quickly, with 42% expecting rent payments to become more difficult over the next year​. It’s not certain whether those numbers are likely to improve, given that many landlords see many of the new government’s proposals as being the final straw in the buy-to-let market. 

The data also raises questions about whether banks are offering adequate support to borrowers. Forty six per cent (46%) of respondents believe lenders provide too little assistance with mortgage repayments, highlighting potential gaps in financial services for homeowners under strain​.

So who finds paying their mortgage the easiest? 

Looking through the data, some groups reported paying their mortgage was less difficult than others – but pretty much ALL groups were less optimistic that they would find the payments easy in a year’s time. 

High-earning groups:
No surprise here, people in the higher socio-economic class (ABC1) were more likely to find mortgage payments manageable, with 72% reporting it as easy to afford currently​ (even though they presumably have more expensive homes). 

Age group differences:
Homeowners aged 25-49 reported the highest levels of ease, with 74% stating they found it easy to pay their mortgage. In contrast, younger mortgage holders (aged 18-24) reported more difficulty, with only 32% finding payments easy​. 

Regional variations:
Regional differences were also evident, in England, residents in London expressed greater challenges, while those in the Midlands reported the highest levels of ease, with 69% finding it easier to manage payments compared to other regions. In Scotland, 80% of respondents felt comfortable. 

Political and social tendencies:
Those identifying with Labour or LibDem voting intentions were also more likely to find mortgage payments easier to afford, with 79% stating it was not difficult​.