A new survey reveals that rising mortgage payments are causing significant financial stress for many UK households, with some paying over £1,500 a month, prompting calls for smarter debt management strategies.
A new survey from L&C Mortgages suggests mortgage costs remain a major strain for many households, with 52% of borrowers saying they worry about their repayments at least once a month and 42% naming their mortgage as their biggest financial pressure. By contrast, the weekly food shop was the main concern for 20% of respondents, while 17% pointed to energy bills. The findings come as many homeowners continue to face higher borrowing costs than they did in the years of ultra-low rates.
The research also points to the scale of the burden. Half of those questioned said they pay between £500 and £999 a month on their mortgage, while 39% said their bill is £1,000 or more, including one in 10 who pay at least £1,500. In a sign of how cautious households have become, more than 85% said they would save any money that covered six months of repayments, rather than spend it. According to L&C, that response reflects both anxiety about household budgets and the priority many borrowers give to building a financial buffer.
David Hollingworth, associate director at L&C Mortgages, said borrowers should review their deal before it ends, compare the full cost of offers rather than focusing only on the headline rate, and consider whether they are sitting on a lender’s standard variable rate, which is often more expensive. He also pointed to overpayments, where permitted, as a way to reduce the balance and interest bill, though borrowers need to check for early repayment charges. If affordability is becoming a problem, Hollingworth said some homeowners may be able to extend the term or move temporarily to interest-only payments, both of which can reduce monthly outgoings but usually increase the total cost over time. He added that fixing a rate can bring greater certainty for budgeting.
The survey findings chime with wider industry concerns. Mortgage Strategy reported that L&C’s data showed 1.4 million UK households were struggling to meet their mortgage costs, while 2.6 million people felt their payments were too high. It also said 58% had never remortgaged for a better deal, 2.5 million had already made major cutbacks to keep up, and 36% were still on a standard variable rate. L&C is also tying the research to a promotion offering one eligible customer up to six months of mortgage payments, with entries open to those who secure a formal recommendation and complete the required application steps before 14 October 2026.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
