As the cost-of-living crisis hits the housing market, almost two in three (63%) of UK adults fear the economic downturn could hurt their chances of getting a mortgage in the next 12 months, according to data from Together.

Of those questioned, 33% had never applied for a mortgage with issues such as saving for a deposit (32%) and concerns about affording monthly payments (17%) named as key roadblocks to homeownership, particularly in the current inflationary environment.

It found that borrowers looking to remortgage as their fixed-rate deals end over the next few years may also face some tough choices.

More than half, 57%, of homeowners have also been impacted by the cost-of-living crisis affecting the affordability of their current mortgage.

Almost one in three said they were looking to fix their mortgage payments for longer to cope with inflationary pressures.

Meanwhile, 16% said they were thinking of shopping around for a better mortgage deal, 14% were considering downsizing to free up cash and 9% said they would even consider selling up entirely to make ends meet.

In Together’s report, economist Dr John Glen warns that as the mainstream market grows, hundreds of thousands of mortgage applications between now and 2030 could fail because would-be borrowers don’t fit into the strict criteria of mainstream banks.

An estimated 53% of the adult population falls into one or more criteria categories classed as ‘non-standard’ by many high street lenders, such as being self-employed, a first-time buyer or having multiple incomes from gig economy jobs. 

Together personal finance chief executive Pete Ball says: “Increasingly, UK households have had to contend with cost-of-living challenges, soaring inflation, rising interest rates and now face the real threat of a recession.”

“This has created the perfect storm, leaving both first-time buyers and existing borrowers feeling concerned about their financial futures and what this means for their mortgage costs.”