One in three mortgage holders with mental health issues cut back on essentials
A survey has revealed that homeowners with mental health issues are more likely to cut back on essentials like food and energy to keep up with mortgage payments.
The YouGov research, carried out for the Money and Mental Health Policy Institute, found that 30% of mortgage holders with mental health problems have reduced spending on necessities to meet their mortgage repayments. The study also discovered that people with mental health issues are twice as likely to use savings to keep up with mortgage payments and to cut back on essential home maintenance and repairs.
Only 29% of mortgage holders were aware of the Mortgage Charter introduced last year, which offers various options to struggling borrowers. Two-thirds of mortgage holders with mental health problems said they would feel anxious about contacting their mortgage provider if they were having trouble keeping up with payments.
This was also a concern for 41% of those without mental health problems. Conor D'Arcy, CEO of the Money and Mental Health Policy Institute, said: "The good news is there are options available if you are struggling. We're calling on lenders to make that help as accessible as possible for the one in three mortgage holders with mental health problems.
"When you're struggling with your mental health, simple tasks like cleaning your teeth can be difficult, never mind picking up the phone to tell your lenders that you don't know how you're going to afford your next payment. It's crucial that mortgage lenders understand these practical challenges, identify those at risk and reach out to them through a channel that suits them."
Couple living on cruise ship as it makes 'more sense' than paying mortgage
A study by YouGov across the UK was conducted in September 2023. A representative from trade association UK Finance affirmed their commitment: "The financial services industry is committed to supporting all customers, and lenders work hard to make it easier for customers to disclose their needs so that they can give them the support they need."
The spokesman dded: "We work closely with our members and specialist charities to ensure banks meet their responsibilities and deliver good outcomes for customers. Lenders are ready to support anyone who is struggling with their mortgage payments, and UK Finance's Reach Out campaign was launched to raise awareness of the help available."
"We would encourage anyone worried about their finances to get in contact with their lender to discuss the support available reaching out to your mortgage lender will not affect your credit score." is the major message from the Reach Out campaign which aims to help mortgage holders understand the support that's available to them.
Separate research released by the Money and Mental Health Policy Institute, Shelter and HSBC UK has shown that two in five people - a whopping 40% - are feeling stressed about their housing situations getting worse this year. More than half of us - that's 56% - have been struggling to sleep at night over the past year because we're so stressed about housing! It gets even worse - seven in every 10 people said they've felt really anxious, and nearly half (49%) said they've felt hopeless about their housing situation.
Both Shelter and HSBC UK are urging anyone who feels overwhelmed by housing problems to get in touch with either Shelter or their bank for support dealing with their money worries. "The housing emergency can feel like a pressure cooker, and we know how easy it can be to feel overwhelmed, but our message is that you don't have to face it alone.", says Nadeem Khan from Shelter.
Maxine Pritchard, the head of financial inclusion and vulnerability at HSBC UK, said: "If you are feeling worried about your finances you're not alone and getting help and advice early can make all the difference. Together with Shelter we've helped thousands of people experiencing homelessness rebuild their lives, and now we're working to help more people and communities build financial resilience and access meaningful support before they reach a crisis point."
Nadeem Khan, Shelter's emergency helpline operations manager, has shared some tips on how to ease housing problems:1. If housing issues are affecting your or your family's health, seek help immediately. 2. Respond to letters and phone calls. It's crucial to read everything and keep a record of all communication. 3. If you're struggling with rent or at risk of losing your home, get advice straight away. There may be steps you can take to improve your situation, like claiming housing benefit. 4. Your mental health is important. Seek specialist help from charities such as Rethink Mental Illness and Mind, or talk to your GP.
The survey by Shelter/HSBC UK was conducted by YouGov, involving over 3,200 people with housing costs in England in January 2024.
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]
Read more similar news:
Comments:
comments powered by Disqus
