Over 40% of Scots would struggle if mortgage payments increased

January 20, 2017 by Brendan O'Neill

Home owners

According to new research, four out of 10 renters and home owners in Scotland would find it difficult to pay their mortgage if it increased by £50 a month.

The study was conducted by YouGov on behalf of Shelter Scotland, and found that 9% are already finding it difficult, 18% would struggle if payments increased by £25 or less each month, and 14% would struggle to pay an extra £50 or more every month.

Just over a quarter of renters and owners said that they had concerns about not being able to pay their mortgage during 2017, while nearly 10% had paid their rent or mortgage using a credit card. Almost one third of respondents had relied on savings to pay their mortgage.

Shelter Scotland has issued a warning to people who may be having difficulty paying their rent or mortgage, as they could be at risk of losing their home. The charity advises people to seek advice rather than ignore the situation. The organisation said that a number of factors had contributed to people being concerned about paying their mortgage in 2017, including benefits changes, job uncertainty and higher inflation being forecast. In 2016, 30,000 households in Scotland lost their homes, which included 5,224 children.

Mortgage advisers are generally sought out when people are considering buying a home, but they are trained to a CeMAP standard so that they can provide advice in all situations, including being concerned about affording monthly mortgage repayments.