Seven million mortgage holders struggling with their bills

The new polling, from StepChange Debt Charity, also shows that 40% of mortgage holders are showing at least one sign of financial difficulty, while 10% of mortgage holders are estimated to be in problem debt.  

Additionally, mortgage holders are more likely to have made just the minimum repayments on their debts compared to the wider UK population, while they’re also more likely to have used credit, loans or overdraft to make it through to payday.  

StepChange’s chief executive Vikki Brownridge said: “In a short space of time StepChange’s mortgage advice team has seen a sharp rise in the cost of borrowing among clients, who are facing on average an approximate £300 jump in monthly payments for a typical sized mortgage now compared to before September 2022. 

“While our figures show that increased pressure is not yet bringing more homeowners to debt advice, the risk is there as people cut back on spending or turn to credit to keep up with essentials and the wider cost of living. The government and lenders must be attuned to this issue with millions of people due to experience eye-watering rises in their monthly mortgage payments. 

“The Financial Conduct Authority has renewed its guidance to lenders to treat borrowers fairly, and we would urge all firms to proactively engage with and support customers showing signs of financial difficulty early, as well as providing effective signposting to free debt advice.”