Pepper Money has revealed that nearly half of homeowners (48%) say they are concerned that the cost-of-living crisis could impact their ability to make mortgage payments in the future.

The research, conducted alongside YouGov, looked at the impact the cost-of-living crisis is having on the finances and mental health of British households.

While there are concerns about mortgage payments, only 2% say they have missed mortgage payments.

Of those surveyed, 71% of people are concerned about their financial situation as a direct result of the cost-of-living crisis.

More than three-quarters (76%) of adults now track their bills at least once a month, representing a significant increase from 67% when the research was conducted last year. 

Meanwhile, 76% of respondents say a £100 increase in their monthly bills would have a significant impact on their finances.

The research found that 37% of UK adults say that their current financial situation is negatively impacting their mental health, and 81% think the economic environment will make it harder for them to get a mortgage.

More than one in five still think they need to wait more than five years after getting a CCJ before applying for a mortgage.

Just over three-quarters (77%) of workers who are self-employed say that being self-employed makes it more difficult to be approved for a mortgage, with half saying it makes it a lot more difficult to be approved for a mortgage.

For first-time buyers (FTBs), the biggest barrier to home ownership is saving for a deposit (36%). 

Nearly a quarter of hopeful homeowners (24%) say it is being able to borrow enough to afford to live in an area they want to live in, 16% say being able to afford the mortgage payments, and 15% say having a poor credit record.

Pepper Money sales director Paul Adams says: “The cost-of-living crisis is impacting everyone and is putting severe financial pressure on the majority of the population.”

“Our research, in association with YouGov, has found that 71% are concerned about their financial situation as a direct result of the crisis, while 76% say a £100 increase in their monthly bills would have a significant impact on their finances.”

“Given this research was held shortly before the energy price cap was raised on 1 October, there is a high probability that this £100 increase in monthly bills will be crystalised for many households in the coming months, and this is only going to increase the financial pressure.”

“Set against this backdrop, and in an environment of increased rates, as a result of the September mini-budget. Mortgage advisers have a big opportunity to positively impact the lives of their customers. A mortgage is the largest monthly financial commitment for most people and good advice can help people potentially save thousands.”