More than three in five (63%) financial advisers who advise on mortgages are concerned that their clients may struggle to make their mortgage payments as a result of the cost of living crisis, a new study has indicated.

According to research from Opinium, these concerns have grown significantly since May last year, when two in five (43%) said they were concerned about clients being able to afford payments.

Opinium’s findings were based on an online survey of 203 financial advisers, 81 of whom advise on mortgages, and it found that as well as worries about their clients’ finances, a quarter (25%) of IFAs are also worried about the impact of a potential house price crash on their own business.

Despite this, over a quarter (27%) of advisers have had more calls regarding mortgages since the mini-Budget last year, with those who have seen an increase mostly hearing from clients seeking general advice on the current state of the market (68%), remortgaging (64%) and advice on what type of mortgage they could afford (32%).

Head of financial services research at Opinium, Alexa Nightingale, commented: “As the cost of living crisis continues, and with interest rates and inflation still sky high, it’s understandable that advisers have concerns about their clients being able to afford their mortgages.”

When asked specifically about their views on first-time buyers, advisers revealed that their outlook on the current state of the housing market is negative. With changes to the housing market over the past 12 months in mind, only 10% of advisers think that more first-time buyers are feeling optimistic.

On top of this, seven in 10 (69%) IFAs think that more first-time buyers are holding off on making a purchase until house prices come down, while a further seven in 10 (70%) think more are waiting to get on the ladder until mortgage rates come down.

According to advisers, this outlook also extends to buy-to-let (BTL) property, with over seven in 10 (73%) IFAs stating fewer people are looking to purchase BTL properties as a result of changes to the housing marketing in the last 12 months.

Nightingale added: “It’s a really tricky time for many financially, so it’s important that adviser remain in close communication with their clients, to provide guidance wherever possible.”

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