Homeowners with mental health problems are more likely to have cut back on food and energy to keep their mortgage costs under control, a charity founded by consumer finance champion Martin Lewis has warned.
The Money and Mental Health Policy Institute said research shows as many as 1.3 million people in Britain with mental health problems are spending less on essentials – including medicines – to meet their mortgage costs, which have risen in many cases . sharply after a series of interest rate increases.
The charity found that while many mortgage holders had been forced to cut back in other areas to keep up with higher repayments, the impact had been particularly acute for the three in 10 mortgage holders with mental health problems.
Hundreds of thousands of people saw their monthly expenses increase last year when their existing mortgage deal expired and they were forced to take out a more expensive loan. It’s estimated that about 1.6 million low-cost, fixed-rate deals will expire in 2024, and while the current home loan rate war will help soften the blow, these borrowers typically still face a big jump in their payments.
Those with mental health problems were “significantly more likely” than those without such conditions to have taken drastic action to cover their mortgage costs, and were also at greater risk of falling into arrears, the charity found.
A YouGov survey of 2,150 British adults who were part of the study found that three in ten (30%) mortgage holders with mental health problems had cut back on essential spending to stay in the black on their mortgage, compared to a fifth (21 % ) of people without such conditions.
They were also about twice as likely (29% compared to 15%) to have plundered their savings to keep up with home loan payments, and to have skimped on essential maintenance and repairs to their home (27% compared to 14 years). %).
The Money and Mental Health Policy Institute is calling on banks and building societies to proactively identify and contact customers struggling with payments, and make support measures “more inclusive and accessible” for people with mental health problems.
It added: “With 1.6 million households having ended their fixed interest rates and facing significant payment increases in 2024, urgent action from lenders is needed to help more homeowners avoid hardship and financial damage.”
The charity’s appeal coincided with a separate survey by the charity Shelter and major bank HSBC, which found that two in five (40%) of people paying a mortgage or rent in England – equivalent to twelve million adults – were afraid that their housing pressure would decrease. will be even worse this year.
More than half (56%) of respondents reported being kept awake at night in the past year, while 70% said they felt anxious, and about half (49%) said their housing situation made them feel hopeless had given.
A spokesperson for banking association UK Finance said: “The financial services industry is committed to supporting all customers, and lenders are working hard to make it easier for customers to disclose their needs so they can give them the support they need. need.
“Lenders are ready to support anyone struggling with their mortgage payments, and UK Finance’s Reach Out campaign was launched to raise awareness of the help available. We would encourage anyone concerned about their finances to contact their lender to discuss the support available.”