Twenty-nine per cent of Brits have reported that their financial health has deteriorated over the past six months, as rising bills and costs take a toll on their financial wellbeing, Moneyhub has reported.
Despite the UK’s inflation rate moving back towards the Bank of England’s 2% target, Moneyhub said that consumers are still feeling the pinch from record inflation levels.
Of those whose financial health has worsened, 63% cited rising bills as the main driver, with three in five (60%) pointing to inflation as a factor.
According to Moneyhub’s research, 15% of people identified themselves as "stretched", which is defined as having nothing left outside of money used for necessary expenditure, while 9% described themselves as "struggling", which is those that cannot afford their necessary outgoings.
The company added that those identifying as stretched (57%) or struggling (75%) were more likely to have seen their financial health worsen over the course of the last six months.
Despite the economic challenges, 18% of individuals that have seen their financial health worsen have spoken to their financial services provider.
Of those that hadn’t approached their financial services providers, 43% said it was because they didn’t believe the provider would be able to offer any support, and a further 13% were concerned about being penalised.
Managing director of decisioning at Moneyhub, Suzanne Homewood, said: "The financial strain many people are experiencing is deeply concerning. While we cannot change the macro-economic environment, the financial services industry can take meaningful steps to support customers better.
"Understanding the full scope of a customer's financial world allows for timely interventions that can prevent issues from spiralling out of control. By leveraging data and technology, service providers are able to have a comprehensive view of their customers’ financial behaviours and world, enabling them to spot issues early and provide the necessary support to help the individual get back on track, positively impacting financial health even in challenging times."
Latest News
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories