The Money Charity have released their debt statistics for July 2023. If you were hoping for some light relief in the financial sector then your wish has not been granted. The statistics are still highlighting many issues hitting peoples’ pockets with the ongoing cost of living crisis. The Money Charity has highlighted UK renters are facing more difficulties than UK homeowners against this backdrop.
Remember that you can view the statistics from last month here in order to compare with the July 2023 debt statistics.
Interest rates still remain high and we are still expecting further hikes next month. These interest rates are having challenging impacts on homeowners, especially if their fixed rate mortgages are due to end soon or they are tracking the base rate. However UK renters are also facing difficulties too and these are the people who are often overlooked in the press when interest rates are mentioned.
With many homeowners facing increases in their mortgage payments, there is now support out there for those finding it difficult to afford those increases. Banks are willing to switch homeowners to interest only mortgages for six months, or extend their mortgage term to reduce their repayments in the short term. Deals can be locked in up to six months ahead and those who are struggling can call their mortgage provider without it impacting upon their credit score. Renters have nothing available to them.
In the last 12 months, UK private rental prices rose by 5.1% with nearly a quarter of private renters falling into the category of being “in serious difficulties”. 36% of social renters are also in that category. Single parent households are more likely to be in difficulty than other types of family units. The statistics highlight some worrying trends, that people are skipping meals in order to save money to pay their mortgage/rent.
The Chief Executive of The Money Charity has stated that “with all lines of people’s expenditure column rising and incomes unable to match them, the UK’s immediate financial outlook is troubling”.
If the past year has had a negative impact on your financial situation, or you are facing increasing debt costs over the next few months, feel free to call us for a discussion on what debt solutions could be available to suit your personal situation.