3.2 million households missing mortgage and loan payments as cost of living rises | Personal Finance | Finance

Around 11 per cent of 18-34 year olds have missed at least one regular payment in the past two years.

This is almost four times the amount of over-55s and six per cent of young adults who have missed some payments.

Multiple payments can have a serious negative impact on someone’s credit score that could prevent them from getting a mortgage or loan in the future.

Based on Mortgage Lender research, here’s a breakdown of the different payments people are defaulting on:

  • 40 percent missed a utility bill payment
  • 27 per cent failed to pay their council tax
  • 25 percent missed their rent payments
  • 23 percent missed personal loan repayments
  • Seven percent missed mortgage repayments.

Peter Beaumont, CEO of The Mortgage Lender, broke down why people are finding it difficult to pay mortgages and other repayments at the moment.

He explained: “The last two years have affected many people’s jobs and salaries, putting pressure on household finances, and with the rise in the cost of living there is even more pressure on the nation’s finances.

“This can result in the loss of a regular payment which can have a knock-on effect on their access to credit down the line.

The mortgage expert called for better support for families struggling with repayments, particularly home owners.

Mr Beaumont added: “In such a volatile economic climate, it is important that we prevent more people from falling down the rabbit hole of financial difficulties.

“The lending market needs to be better equipped to deal with the increasing numbers of people emerging from the pandemic with adverse credit histories.

“Rather than punishing people for the consequences of an unprecedented event, the industry should be working together to support those who have missed payments so that people, especially aspiring homeowners, are not locked out of the market .”

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