Close to half of the people in the UK who are paying back a mortgage are concerned that they will not be able to afford them, according to research by MetLife.
This survey of UK homeowners found that 48% of people with a mortgage worry about whether they will still be able to manage repayments due to the cost of living crisis. In total, 2,000 people from around the country took part in the survey, with the results also revealing that a further 42% do not have any reserves of money that they could use to meet repayments should their income be affected.
One aspect that was uncovered by the MetLife research is that there is an age disparity when it comes to how prepared people are. Surprisingly though, it is people aged between 18 and 24 who are in the best position to cope. 61% of those in that age group have sufficient reserves to be able to meet repayments for two months if they lose their jobs.
Among those aged between 24 and 38, 47% indicated that they have enough savings to be able to keep paying back their mortgages for up to 3.7 months in that situation.
Dominic Grinstead from MetLife UK told Mortgage Strategy that:
“While our findings show some have savings that they can use to fund mortgage payments, this feels like a sticking plaster approach.”
Mortgage advisors with CeMAP training can help clients switch to more affordable products or revise payment plans with lenders, which can be particularly necessary in difficult economic times.
