Eight out of 10 consumers are worried about rising living costs over the next six months, according to a new YouGov poll.

This nationwide survey found that 39% were “very worried” about the cost of living squeeze, with a further 45% describing themselves as “fairly worried”.

These findings come ahead of the Chancellor’s spring budget, where he is coming under pressure to delay planned tax and NI increases in the face of spiralling fuel and food bills and rising interest rates. 

Alongside this YouGov survey, separate research by Bluestone Mortgages found that rising living costs were a key concern among consumers who have traditionally been underserved by the mortgage market, such as the self-employed and those with poor or no credit history.

Bluestone’s survey found that 67% of this group said that the rising cost of everyday items was a major concern. This compares to just 35% who cited financial instability as a worry, and 33% who said they were concerned about rising interest rates.

Almost one in five (18%) thought their financial situation was likely to worsen over the next year, making it harder to secure a mortgage. 

Mojo Mortgages co-founder and chief executive Richard Hayes says: “The Chancellor is facing some difficult choices ahead of next week’s spring statement, with the cost of living crisis putting significant pressure on household finances. 

“Many homeowners are concerned about rising interest rates and the impact this will have on repayments at the same time that household budgets are stretched. 

“As the cost of living continues to increase, we may see increasing scrutiny on the affordability of some mortgages that would impact first-time buyers most acutely. Our own research shows that first-time buyers in some areas would already need to borrow up to 7.5 times their income to buy an average priced property.

“The housing market remains buoyant, with Zoopla reporting that 2022 had seen the busiest start to the year since 2016. However, with pressure growing from rising energy bills, the increase in national insurance contributions, and rising interest rates, support for homeowners from the Chancellor would be very welcome.”

Bluestone Mortgages chief executive Steve Seal adds that this is also a problem for those looking to get on the housing ladder.

“The rising cost of everyday items, soaring energy bills and the upcoming increase to National Insurance contributions will all have an impact on affordability and put further pressure on the cost of living.

“As a result, it’s likely many consumers will put off the homeownership process for fear of rejection, or they may have already been turned away due to their more ‘complex’ needs.

“While challenges still prevail, it’s important for those disenfranchised from high street lenders to remember that there are options available,  and it’s the duty of these lenders to point them in the right direction.”