More than three in five (63%) of UK adults fear the current economic downturn of the nation could hurt their chances of getting a mortgage in the next 12 months, according to new research.

A study by specialist lender, Together, revealed that a third of respondents (33%) have still never applied for a mortgage.

Issues such as saving for a deposit (32%) and concerns about affording monthly payments (17%) were cited as key roadblocks to homeownership, particularly in the current inflationary environment.

The findings, based on a June study among 7,000 UK adults, also suggested the borrowers that are feeling the pressure are not just limited to first-time buyers, with Together stating that borrowers looking to remortgage as their fixed rate deals come to an end over the next few years may also “face some tough choices”.

More than half (57%) of homeowners questioned revealed they have been impacted by the cost of living crisis affecting the affordability of their current mortgage, indicating they may not keep pace with mortgage payments as prices continue to rise. Together said this suggests they may be prepared to take drastic action to keep their finances afloat, such as one in ten (9%) who revealed they are considering selling altogether.

The study also found that 29% of respondents said they were looking to fix their mortgage payments for longer to cope with inflationary pressures, while 16% said they were thinking of shopping around for a better mortgage deal, while a similar percentage (14%) were considering downsizing to free up cash.

“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,” commented personal finance CEO at Together, Pete Ball. “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.

“But there are a range of solutions. While there was some relief in the energy plan, with prices capped from next month, a longer-term plan is still very much needed. Our research makes clear just how many thousands of potential homeowners could be shut out of the market altogether without adequate support. People looking to remortgage after their fixed rate deals come to an end may also struggle to find the right solution tailored to their needs.

“As a specialist lender, we understand individuals’ specific borrowing needs in these tough times in a way that a formulaic response cannot and will continue to support those customers who don’t necessarily fit the mainstream mould achieve their property ambitions.”

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