One in 10 mortgage holders anxious about making repayments

At least one in 10 borrowers (13%) aren’t confident about making their mortgage repayments, according to the latest Household Financial Confidence Tracker from Compare the Market. 

The Bank of England cut interest rates in August to 5% – the first reduction in four years. Interest rates influence the cost of borrowing money, and how much you get for saving. So a high interest rate means you’re charged more for borrowing money and should be paid a higher percentage on your savings. 

Additional cuts were expected but last month, the Bank decided to keep rates at 5%.  

The tracker found that over half (57%) of mortgage holders say they are unlikely to switch to a new deal while rates stay at the current levels. 46% of the survey respondents said that if interest rates had been cut, they would have thought about looking for a new deal.  

More than one in four people (26%) do not feel confident about managing their household bills in the coming weeks. Many are cutting back on non-essential expenses. Almost half (49%) of those surveyed said they have cut back on eating out, while 41% said they are buying less clothes. Holidays, leisure activities, large purchases like computers and cars, and subscriptions, were also cited as things households are cutting back on.  

Are mortgage rates coming down?   

In recent months, some mortgage providers have started to lower their rates on fixed deals and trackers. Money experts are advising people to shop around for the best deals. 

Guy Anker from Compare the Market said he encourages everyone to “proactively look for savings where possible to avoid needlessly wasting potentially hundreds and sometimes thousands a year”.  

Money worries? Seek emotional support 

Struggling to pay the bills like mortgage repayments and rent, can be extremely frightening. If money worries are impacting your health, it’s important to know that there is advice and support available.  

Mental Health & Money Advice offer support, advice and solutions for people experiencing issues with their mental health because of worries about money.  

Get free debt help 

If you’re struggling with bills like mortgage repayments, you can always speak to us.  

Whether you need budgeting help, advice on your benefit entitlement or information on debt solutions, we’re here for you.  

All advice is free and impartial. Some debt solutions are also free, some have a fee.