More than one in 10 homeowners are currently struggling to pay their mortgage every month and almost half feel more financially worse off than they did a year ago, according to new research from Go.Compare Home Insurance.
It highlighted the impact of the ongoing cost of living squeeze combined with climbing interest rates, although experts predict a drop this year.
Stuck between a rock and a hard place, homeowners are having to make increasingly difficult decisions.
A staggering 40% claimed they had to drop the amount they put into savings in order to afford their monthly mortgage or put their savings plans on hold altogether.
The pressures of this bill was also eroding budgets for other things like entertainment expenses which a third of homeowners have had to cut back on. This includes the likes of internet or phone packages.
Money struggles in the cost of living crisis also seem to have an age factor as 26% of over-60s reported struggling with essential bills like mortgage and utilities while this reached 37% of those aged between 40 and 59.
Homeowners under 40 seem to be suffering the most, according to the report, as one in 10 have reduced or outright cancelled their home insurance while 11% have cut back on their vital pension contributions in order to make ends meet.
While younger people appear to be facing a steeper uphill climb, the older generations are feeling a greater strain, as 46% of those over-60s reported feeling that their financial situation has greatly declined over the last year.
Only 41% of the 40 to 59 age group feel this way and 36% of young adults reported this feeling too.
Nathan Blackler, a home insurance expert at Go.Compare, warned GB News against making decisions like cutting back on home insurance: “If you’re already struggling financially, the cost of having to repair or replace damaged property can feel overwhelming and could lead to even more strain.”
Instead, he advised struggling Brits to get guidance from the Money and Pensions Service.
The Bank of England’s recent decision to keep the base rate to 4.75% in December was damning news to many homeowners hoping for some respite.
However, there may be some hope on the horizon as experts predict 2025 could bring multiple cuts to the base rate which should shave off some costs for borrowers down the line.