‘Important’ warning issued to 3.2 million people with Lloyds, NatWest, Nationwide, Santander, HSBC mortgage
As many as 3.2 million households are missing mortgage and loan payments as the Cost of Living continues. Based on The Mortgage Lender’s fresh study and research, 40 per cent have missed a utility bill payment and 27 per cent missed paying their council tax.
25 per cent missed their rent payments, 23 per cent missed personal loan repayments and seven percent missed mortgage repayments. Peter Beaumont, the CEO of The Mortgage Lender, broke down why mortgages and other repayments are hard for people to pay off at this moment in time.
He explained: “The past two years have impacted many people’s jobs and salaries, putting a squeeze on household finances, and with the rising cost of living there is even greater pressure on the nation’s finances. This can all lead an individual to miss a regular payment which then could have a knock-on effect on their access to credit down the line.”
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The UK’s biggest mortgage lenders in the top ten are Lloyds Banking Group, NatWest Group, Nationwide Building Society, Santander UK, Barclays, HSBC, Virgin Money, as well as Yorkshire Building Society, and Coventry Building Society, and also rival building society TSB.
Mr Beaumont added: “In such a volatile economic climate, it’s important that more people are prevented from falling down a rabbit hole of financial difficulty. The lending market needs to become better equipped to deal with the greater quantities of people who are emerging from the pandemic with adverse credit histories.
“Rather than penalising people for the consequences of an unprecedented event, the industry should be working together to support those who’ve missed payments so that people, especially aspiring homeowners, aren’t locked out of the market.” Four in 100 adults have admitted to having missed multiple payments, the research added.
The study also found six per cent in the country has been failing to make ends meet and repay either a mortgage payment, debt repayment, rent or energy bill. Worryingly, four in 100 adults have admitted to having missed multiple payments amid the Cost of Living crisis.
