Nearly 3 million Brits feel their mortgage payments are too high
Over the last few years, an increasing number of people in the UK have been able to get themselves mortgages, as the financial situation has eased and lenders have seen more buyers as viable borrowers. However, a new study suggests that many are actually uncomfortable with the mortgage deal they currently have.
In the report released by L&C Mortgages, it was revealed that as many as 1.4 million people in the UK struggle each month to make their mortgage payments, while more than 2.6 million feel that the cost of their repayments each month is too high to handle.
It was also discovered that as many as 2.5 million Brits with a mortgage have had to, at some point, make savings and cut costs elsewhere in order to be able to afford their mortgage repayments. And 4.2 million feel like they are in a position where they will never be able to fully pay off their mortgage.
"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," said David Hollingworth from L&C Mortgages.
"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," he added.
However, one of the main problems many people face is that they are not actually on the right mortgage deal at present. Mr Hollingworth said that some 36 per cent of people are still on standard variable rate mortgages, which are higher than other products in terms of cost at the moment, and only likely to get more expensive if interest rates rise.