Bluestone Mortgages has revealed that 16% of people would be too embarrassed to seek financial support should they need it.
31% say they don’t think they would be eligible to receive support and 22% say they wouldn’t even know where to begin, while 11% would be worried about the impact on their credit score.
At a time when 24% of UK adults are concerned about their mortgage repayments, the findings also reveal a lack of awareness and understanding of support options available.
31% say they have no awareness or understanding of how a financial organisation such as their lender or energy provider could help them if they ended up in financial hardship. 52% say they are not aware of government-backed support services such as MoneyHelper, and 29% are unaware of the support a debit adviser could offer; meanwhile two-fifths say the same about the local council.
Satnam Sidhu, mortgage spokesperson at Haysto, said: “Advisers have a very important role to play to support those who are embarrassed about their financial situation. The first task is to create a non-judgmental and safe place for the customer to discuss any life experiences and credit issues. Doing this reduces the embarrassment and anxiety levels and helps focus on what the customer wants to achieve.
“Aside from adviser support, there needs to be greater emphasis on education across the industry to help increase financial awareness amongst individuals. Many people do not understand the impact of defaults, CCJ’s or debt management plans on their ability to obtain a mortgage.
“At Haysto we strive to address this issue by providing support for individuals so they know and understand their circumstances and options before making any decisions.”
Steve Seal, CEO of Bluestone Mortgages, added: “As the cost of living crisis continues to intensify, we expect to see a growing cohort of customers locked out of the mainstream mortgage market as they do not fit the “vanilla” criteria.
“For those who find themselves in this situation, it’s important to remember that there is help at hand and early engagement is key. While many customers may be embarrassed to speak about the state of their finances, the earlier they can engage, the more tailored support they will receive.
“Whether that be support directly from the lender, or being signposted to a debt adviser who can help them get their finances back on track, it’s important that we as an industry highlight the support options available so that we can deliver a fair customer outcome which takes into account a borrower’s individual situation.”
