Recent research from Bluestone Mortgages has highlighted a concerning financial trend in the UK. Astonishingly, 18% of UK adults, which amounts to about 9.7 million individuals, have missed at least one payment over the past year. This alarming statistic includes 7% of mortgage holders who have failed to make a payment.
The Stigma of Seeking Help
In an era marked by financial challenges, an unexpected revelation from the study shows that approximately 14% of UK adults are too embarrassed to seek financial assistance when they need it. Additionally, 13% are unsure about where to start when it comes to seeking help. This reluctance is further complicated by the fact that more than one in ten individuals feel too ashamed of their financial situation to seek assistance, and about 9% fear the repercussions on their credit scores.
Inflation Woes and Mortgage Concerns
The current inflationary environment is a source of worry for nearly half (49%) of UK adults, particularly regarding their capacity to continue paying their mortgages. This concern is compounded by a general lack of knowledge about available support options.
A Gap in Financial Awareness
The research unveils a significant gap in financial awareness among the public. Surprisingly, 17% of people are unaware that financial organizations, such as mortgage lenders or energy providers, could offer support in times of financial hardship. Even more, a third (36%) of the population, though aware of such support, do not understand how it could benefit them.
Industry’s Role in Providing Support
Reece Beddall, the head of sales and marketing at Bluestone Mortgages, emphasizes the pivotal role of the mortgage industry in aiding those embarrassed to discuss their financial woes. He suggests that brokers should create a non-judgmental environment for clients to discuss their unique circumstances and any credit issues they might face. Furthermore, lenders should focus more on educating their clients to enhance their financial understanding.
Beddall remarks, “It’s our duty as an industry to guide customers towards the support options available to suit their unique circumstances.”