41% of UK consumers – the equivalent of 21 million people – are worse off financially compared to 12 months ago, according to new research from specialist lender, Bluestone Mortgages.
Despite the recent fall in the level of inflation, on average consumers are worse off by £229 per month, with women feeling the pinch more (£250 compared to £201 for men).
The findings show that families (aged 35-44) and those with adverse credit have been hit the hardest by the ongoing financial pressures, with 47% saying they are worse off than 12 months ago. These groups are worse off by £288 and £267 per month respectively.
Amid ongoing financial pressures, the cost of living crisis is cited as the top financial concern by consumers (83%), followed by increased utilities and council tax bills (64%) and reduced income (25%). However, the squeeze on finances is also affecting people’s ability to afford their homes. 55%of renters are worried about increasing rent costs, and 19% are worried about saving for a deposit, while 43% of mortgage holders are concerned about rising mortgage repayments.
Ryan Davies, strategy director at Bluestone Mortgages, said: “While inflation is easing, it is not falling quickly enough to ease the strain on consumer finances. As a result, we expect to see a rise in the number of customers with adverse credit as the cost of living pressures continue.
“These financial pressures often eat away at customers’ surplus income, sometimes causing clients to miss payments. Minor setbacks like these can trigger a computer says no response and leave would-be borrowers with nowhere to turn. For brokers with clients in this situation, it will be important to signpost them to available support. It’s our industry’s duty to educate customers on the variety of products on the market to suit their unique circumstances so that they too can achieve their homeownership dreams.”