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The number of mortgage holders missing essential payments has risen, as households continue to struggle with the high cost of living.
The latest data from the Which? Consumer Insight Tracker shows that one in 12 mortgage holders missed an essential payment in the month to 8 March.
Additionally, more than half of households said they had made an adjustment to cover their essential bills.
Read on to find out more about this month's findings and for advice on what to do if you're struggling to pay your bills.
In the month to 8 March, 8.1% of homeowners with mortgages missed an essential payment, which is classified as a mortgage, utility bill, credit card or loan repayment.
This is the third highest figure recorded since Which? began tracking the data in April 2020 and only marginally below the record high of 8.5%.
The rise has largely been driven by an increase in missed household bills and debt repayments.
Overall, 4.8% of households missed a utility bill payment, compared with 2.8% the previous month. For credit cards and loans, the figure was 4.7%, up from 2.4% last month.
The chart below shows the percentage of mortgage holders who have missed a payment since April 2020.
Which? also tracked missed payments among renters and people who own their homes outright.
Overall, 14% missed an essential payment, while just 1.6% of people who owned their home outright missed a payment.
This is perhaps unsurprising, with rising rents continuing to heap financial pressures on tenants.
The chart below shows how missed payments vary between homeowners and renters.
Some 54% of households said that they had made at least one adjustment to cover their essential spending, such as bills, groceries, school supplies and medicines.
These adjustments commonly included cutting back on essentials, dipping into savings, selling possessions or borrowing.
This is lower than the 60% recorded last March, but higher than levels recorded in 2020 and 2021.
Overall, consumer confidence also took a hit this month.
We found that 31% of respondents to our survey said that they think their financial situation will get worse over the next year compared with 24% who think it will get better.
These fears have in part been sparked by concerns over upcoming council tax rises, with 7% of those expecting their finances to get worse specifically expressing concern about a rise in these bills from next month.
If you're worried about meeting your mortgage repayments, the first thing to do is contact your lender to discuss what support options may be available.
Lenders may offer measures such as temporary payment holidays, extending the term of the loan to reduce your monthly repayments or moving you on to an interest-only mortgage for a short period of time.
See our guide on what to do if you can't pay your mortgage for more information.
If you're coming to the end of your fixed mortgage term, you might be facing the prospect of higher repayments when you come to remortgage. Consider speaking to a mortgage broker for advice on your options.
Find the right mortgage using the fee-free service provided by L&C Mortgages
Compare mortgagesIf you click on the link and complete a mortgage with L&C Mortgages, L&C is paid a commission by the lender and will share part of this fee with Which? Ltd helping fund our not-for-profit mission. We do not allow this relationship to affect our editorial independence. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
If you're struggling to pay your rent, contact your landlord or letting agent to see if you can reach a compromise.
Try to do this before you miss a payment, and be honest about your circumstances and what you can afford to pay.
There are lots of places where you can get free advice. Our guide on what to do if you can't pay your rent includes a list of key resources.
Energy bills have put a huge dent in household finances over the past couple of years.
If you're worried about paying your bill, get in touch with your energy provider to find out what it might be able to do to help you.
This could include changing the frequency of your payments, moving you on to a different tariff or helping you access a hardship fund.
You should prioritise your housing and utility bills before dealing with credit card or loan debts.
If you think you're going to miss your repayment, the advice is the same as above – contact your lender in the first instance.
Your provider may offer you a repayment plan to pay off the debt over a set number of years or temporarily pause your repayments.
The Which? Consumer Insight Tracker is an online poll conducted monthly. It's weighted to be nationally representative, with approximately 2,000 respondents.
This article summarises the findings of our March 2024 financial wellbeing report. You can view the latest data from our reports on our Consumer Insight website.
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