View more on these topics

Over one million borrowers struggling with mortgage payments

Research from L&C Mortgages finds one third of homeowners are on a standard variable rate mortgage

House-Home-Property-Ladder-Mortgage-700x450.jpg

Data from L&C Mortgages has found that 1.4 million UK households are struggling to pay their mortgage and 2.6 million people think their monthly mortgage payments are too high.

A report from the mortgage adviser says over half have never remortgaged for a better deal and 2.5 million admitted they have been forced to make significant cutbacks to reduce their spending in order to afford their mortgage payments.

L&C’s data also shows that the nation has an average debt of £10,048 across overdrafts, student loans and on credit cards. This number rises to an average of £12,992 when looking at those aged between 18 and 34.

L&C also revealed that over a third of homeowners are still on a standard variable rate mortgage.

The reports says: “Not only are these rates typically higher but if interest rates rise, the four million people who are on SVR mortgages could see their payments go up even more.

L&C Mortgages associate director David Hollingworth says:The fact that people have been making cuts in order to cover mortgage payments indicates how people feel they are ‘just about managing’ in many aspects of their lives.

“We know that British households last year ran down their savings to a record low and that the cost of basics such as energy and the weekly shop are continuing to rise – so it’s no wonder that people are feeling the pressure when it comes to their monthly mortgage payments.

“The problem is although people feel they are struggling, they are not taking steps to manage their mortgage.”

L&C also looked at the average time it would take UK residents to pay off the existing balance on their mortgage.

The average household expects to pay off their current mortgage in 13 years. When looking at the data across the different regions, half of the UK expects to pay off their mortgage in just over a decade.

Recommended

UK-Houses-Building-Homes-700x450.jpg
2

Will the latest FCA review hit interest-only mortgages?

Mortgage lenders have downplayed the risks in their interest-only back books as they fear consumers could be left underserved by a hamstrung market. The FCA launched its third review into the sector in just five years last week. It unveiled the latest thematic review in its 2017/18 business plan. The business plan says: “Around 1.8 […]

UK House Property 480
16

Pensioners sue mortgage lender over self-cert interest-only loan

Coventry Building Society’s specialist lender Godiva Mortgages is being sued by two pensioners for more than £400,000 over a controversial self-certified interest-only mortgage deal. The loan was taken out on a £650,000 house in Surrey where Norma Mason, 79, and her husband Robert Mason, 78, say they have lived for 40 years. On 1 February […]

Home-Houses-Different-Mortgage-Rent-700.jpg

Threesixty backs new club for mortgage advisers

Service provider Threesixty has backed the launch plans of equitable mortgage club The DA Alliance. Threesixty managing director Phil Young says he wants to “support and help implement” plans to launch the new club, which aims to deliver 100 per cent of procuration fees to its members. Young says he is looking to promote the […]

Payment-Fine-Currency-Money-700.jpg
4

Pension fraud hits monthly record high of £8m

Figures from the City of London Police show losses from pension scams hit a record high in March of £8.6m. The Financial Times reports 24 victims reported they had lost money to pension liberation scams in scams in March. This compares with £779,000 in losses reported by 12 individuals in February. A total of £13m […]

Seeking quality in uncertain markets

By Ewan McAlpine, Senior Client Portfolio Manager In uncertain times, investors naturally seek safety. But in fixed income markets, what does that really mean? Ewan McAlpine outlines the approach RLAM’s Fixed Income Team will be adopting across its credit funds in response to potentially volatile markets this year. Click here for full article

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment