59% of Mortgage Holders in the Midlands Struggling with Mental Health as Cost of Living Crisis Hits Home

According to a new survey of 2,000 UK homeowners who pay a mortgage, conducted by independent market research firm Danebury Research on behalf of global technology leader Dye & Durham, the ongoing cost of living crisis is affecting the mental health of more than half, 56 per cent, of UK mortgage holders who have genuine concerns over their financial situation and that of their families.

Nearly a third (30 per cent) say they are worried they will fail to make mortgage repayments within the next year, with those aged 18-24 expressing particular concern (42 per cent).

In addition, more than a third (36 per cent) said they could only afford to continue paying their mortgage for two months if a job loss affected the main breadwinner, meaning repossessions could become a rising risk for the UK’s property market.

And with one in eight (12 per cent) UK homeowners expecting to delay selling or buying a home this year, legal professionals that rely on property transactions to drive revenue will need to take a closer look at their operations and make adjustments to better adapt to volatile market conditions and save money.

Martha Vallance, chief operating officer for Dye & Durham, said: “The effects of high interest rates, energy bills and the increased cost of living overall cannot be underestimated. Our survey data shows people in the UK are extremely concerned about both their short- and long-term future and have reduced spending, raided savings and are delaying major purchases.

“For legal professionals that rely on property transactions this is likely to have a significant effect for the duration of 2023 and beyond. Now is the time to start evaluating technologies that can help modernise their businesses and help them save money by reducing unnecessary costs.”

• More than a third, 37 per cent, of respondents in the East Midlands expect it will take significantly longer to pay off their mortgage than originally anticipated compared with 39 per cent in the West Midlands and 36 per cent nationally;
• More than 55 per cent across the Midlands have reduced the personal usage of their car to save money;
• 67 per cent of those in the East Midlands are worried offspring will be unable to get on the property ladder compared with 66 per cent nationally and 63 per cent in the West Midlands;
• 39 per cent in the East Midlands expect to delay home improvements compared with 34 per cent in the West Midlands and 35 per cent nationally;
• Almost a fifth, 19 per cent, in the Midlands expect they will need to delay retirement plans;
• 50 per cent of those in the East Midlands expect to have less money to put into savings, pensions or investments compared with 40 per cent in the West Midlands and 46 per cent nationally;
• 39 per cent of mortgage holders in East Midlands said they could comfortably afford to continue paying their mortgage for just two months or less, if there was a change of circumstances for the main income earner, compared to 34 per cent in West Midlands and 22 per cent in London.
• To help manage monthly outgoings, three in five, 60 per cent, homeowners have cut-back on takeaways or meals out – 56 per cent East Midlands and 58 per cent West Midlands. More than half (55 per cent East Midlands and 49 per cent West Midlands) say they have reduced clothes shopping
• 45 per cent in the West Midlands said they feel ‘stuck/unhappy’ in their current home/life/job but can’t afford to change their circumstances
• To help better help manage their household budgets, 45 per cent of those in the East Midlands agreed that they have started selling personal items, or are doing this more often, whether online or at car boot sales, compared with 43 per cent nationally, and 39 per cent in the West Midlands.

Paul Clarke, Dye & Durham, UK product lead, said: “For those concerned about making mortgage payments, seek advice from a mortgage advisor or your lender as help is available. It may be possible to secure a mortgage holiday or switch to interest-only payments for a temporary period. Selling a property can take a minimum of two-three months from sale agreed to completion, so for those considering downsizing to minimise mortgage commitments, don’t delay consulting an estate agent or legal conveyancer for advice.”

Property and legal professionals including solicitors, lawyers, legal firms, estate agents and mortgage brokers saw record numbers of property transactions following the Covid-19 Pandemic.

While this had a positive impact on the bottom line of many sector professionals, the increased volume of sales meant broader strategic plans were placed on hold. With a slower and more challenging market expected throughout 2023, and many consumers adjusting their plans due to the cost of living constraints, it presents a chance for industry professionals to implement plans to improve operational efficiency.

Mr Clarke said: “With transaction volumes likely to be reduced this year due to consumer concerns over the cost of living crisis, professionals now have the opportunity to take a closer look at their operations and evaluate ways to improve efficiency for both their businesses and their customers.

“By improving their processes and workflows now, to support a more agile approach to transactions and practice management, it will provide a real advantage once the market bounces back to previous levels.

“For those concerned about making mortgage payments, seek advice from a mortgage advisor or your lender as help is available. It may be possible to secure a mortgage holiday or switch to interest-only payments for a temporary period. Selling a property can take a minimum of two-three months from sale agreed to completion, so for those considering downsizing to minimise mortgage commitments, don’t delay consulting an estate agent or legal conveyancer for advice.”

For further information, see dyedurham.co.uk