Homeowners are increasingly concerned about the economic climate and how it will affect their household finances, according to research by Trussle. 

A survey of 2,000 homeowners by the online mortgage broker found that 2 in 5 (38%) homeowners are worried about their mortgage payments given the current rise in living expenses while 1 in 5 (20%) are not sure how they will meet their next payment.

Last week, the Office for National Statistics (ONS) announced that inflation climbed to 9.1% in May, increasing the cost of socialising and clothing right through to the weekly grocery shop. 

Alongside this, the Bank of England (BoE) increased the base rate by 25 basis points to 1.25%, marking the fifth base rate rise since December 2021 after a decade of historic lows. 

Utilities have also seen major price hikes with the energy price cap raised by 54% in April. Earlier this month, the Monetary Policy Committee said it expected inflation to be over 9% during the next few months and to rise to slightly above 11% in October. 

The increase in October reflects higher projected household energy prices following a prospective additional large increase in the Ofgem price cap.

Despite a hard economic backdrop, Trussle says the housing market has defied expectations during the pandemic, with the average price of a home rising by 18.2% in two years.  

However, the online mortgage broker explains that more recently, lenders and industry experts have signalled that the boom could be about to end as affordability issues catch up with the market.  

Trussle’s research found that homeowners were largely unaware of potential options to help them weather financial challenges. 

Only 10% have investigated when they are able to remortgage, which would give them greater security in the face of rising interest rates, while only a third of homeowners have evaluated their overall expenditure.

Trussle head of mortgage operations Amanda Aumonier says: “Homeowners are facing a perfect storm of challenges that are pushing their finances to breaking point. This has left many feeling deeply worried as to how they can keep paying their monthly bills and make ends meet.”