"The mortgage industry has a key role to play in supporting these customers, creating a safe space for them to talk about their financial situation without embarrassment"
- Ryan Davies, strategy director at Bluestone Mortgages
Nearly one in four (24%) UK adults - equating to over 12.2 million people, have missed one or more payments in the last 12 months, up from 18% in 2023, according to new research from Bluestone Mortgages.
Nearly two thirds (64%) of those with missed payments cited the cost of living crisis as the main reason.
Utility bills were cited as the top missed payment, with 10% missing one or more payments, closely followed by missed credit card payments (9%). These figures increase significantly for those with adverse credit, to 40% and 35% respectively.
Seven in 10 who missed a payment in the last year said this impacted their ability to access financial services.
Despite one in four adults having missed one or more payments in the last year, the research reveals there are significant barriers to people seeking financial support should they need it. Of those who missed a payment in the last 12 months, the top barrier to seeking financial support was not knowing where to begin, and feeling too embarrassed to ask for help (both 29%). This was closely followed by feeling too embarrassed to admit the state of their finances (28%) and worrying about the impact on their credit score (20%).
Ryan Davies, strategy director at Bluestone Mortgages, commented: “Missed payments are no longer isolated events and are becoming part and parcel of people’s everyday lives as the squeeze on household and personal finances continues to take its toll.
“As a result, we expect to see a growing number of customers with adverse credit looking for financial support. The mortgage industry has a key role to play in supporting these customers, creating a safe space for them to talk about their financial situation without embarrassment while providing them with information about the different options available. Ultimately, it is our duty as an industry to signpost these customers to the help they need during these challenging times.”
