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Two-thirds worry cost of living crisis will stop them from getting a mortgage

Christina Hoghton
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Christina Hoghton

Mortgages are more expensive and harder to get as inflationary pressures impact existing borrowers and those looking to get a new homeloan

The cost of living crisis is leaving homeownership dreams ‘on a knife-edge’, according to Together.

The specialist mortgage lender found that nearly two-thirds (63%) of adults are worried that the economic downturn will hurt their chances of getting a mortgage in the next year.

Existing borrowers worried too

Over half (57%) of mortgage holders worry they can’t keep pace with mortgage payment as prices continue to rise.

Almost one in three (29%) said they were looking to fix their mortgage payments for longer to cope with inflationary pressures, while 16% said they were thinking of shopping around for a better mortgage deal.

One in 10 (9%) would even consider selling up entirely to make ends meet and 14% were considering downsizing to free up cash.

Barriers to buying

A third – 33% – of those questioned said they have never applied for a mortgage, with barriers such as saving for a deposit (32%) and concerns about affording monthly payments (17%) stopping them from getting onto the housing ladder.

Pete Ball, personal finance CEO at Together, said: “Increasingly, UK households have had to contend with cost-of-living challenges, soaring inflation, rising interest rates and now face the real threat of a recession. This has created the perfect storm, leaving both first-time buyers and existing borrowers feeling concerned about their financial futures and what this means for their mortgage costs.

“But there are a range of solutions. While there was some relief in the Energy Plan, with prices capped from next month, a longer-term plan is still very much needed. Our research makes clear just how many thousands of potential homeowners could be shut out of the market altogether without adequate support. People looking to remortgage after their fixed-rate deals come to an end may also struggle to find the right solution tailored to their needs.”