Number of mortgage holders skipping payments rises

March 28, 2024 by Heidi

Property Market

The number of people in the UK with mortgage who failed to make one of their crucial payments last month went up to the third highest it has been in three years, according to new data.

This data comes from the Consumer Insight Tracker published by Which? It shows that the percentage of people in that situation is more than 8%. That is the third highest percentage since the consumer choice brand began to keep a record of the figures, back in April of 2020. The absolute highest percentage that has been noted during that time period is 8.5%.

The missed payment in question is not necessarily the outstanding mortgage though. Others that are classed as essential include utility bills, repayment of any loans and credit card bills. The company is stating that debt payments and bills are the primary ones that are being missed.

Utility bills account for the missed payments among 4.8% of people, whereas the figure was 2.8% the month before. For another 4.7%, it is loan and credit card repayments that have been skipped, whereas that figure was 2.4% the month before.

Among the 54% who have managed to continue making all of their payments per month, a number of solutions have been found. Some have reduced their spending on essential items while others have fallen back on savings, borrowed cash or sold possessions.

A mortgage advisor with CeMAP training could help somebody in this position by negotiating terms for repayment with their lender that they can manage.