Which? has reported a concerning number of households missing crucial payments. It is estimated that around one in 12 mortgage holders missed essential payments such as housing, utility bill, credit card or loan payments in the month leading up to early March.
In the period ending on March 8, an estimated 8.1 percent of mortgage holders failed to make necessary payments. This is the third highest level recorded by Which?
since they began tracking this data in April 2020.
The rate of missed payments was also high among renters, with one in seven (14 percent) failing to make essential payments in the month leading up to March 8.
Homeowners who have paid off their mortgages were less likely to miss payments, with an estimated 1.6 percent experiencing this, down from 2.8 percent in February.
The research suggests that the increase in missed payments for mortgage holders and renters is due to a rise in missed utility bills and credit card or loan payments, according to Which?
The consumer group’s findings indicate that the cost-of-living crisis continues to significantly impact household finances and people’s ability to cover essentials.
More than half (54 percent) reported making at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the past month.
These adjustments included cutting back on essentials, dipping into savings, selling possessions or borrowing.
Nearly a quarter (24 percent) of people think their money situation at home will get better in the next year, but three out of 10 (31 percent) think it will get worse.
Just over one in five (21 percent) think the UK’s economy will be better in the next year, but half (50 percent) think it will get worse.
A man from the east of England said to the researchers: “The cost of essential everyday items is still rising. Council tax is rising. I cannot get a pay rise.”
But another man, from the north-west of England, thinks his money situation will get better because “both myself and my wife are due pay rises in the coming months”.
Which? tells people to ask for help right away if they can’t pay for things they need.
They also want companies that sell important things to do more to help people who can’t pay and make sure they’re giving good value.
Rocio Concha, from Which?, says: “It’s very worrying that missed payment levels are still so high with almost one in 10 mortgage holders missing a household payment in a single month.”
Yonder did a survey for Which? and asked around 2,000 people from all over the UK.
