Almost a quarter of homeowners are worried about renewing their mortgage during the pandemic, while a third (32%) said their income was less secure now than before the pandemic, according to a poll commissioned by broker Willow Private Finance.
Also, more than 1 in 10 mortgagees (12%) have had to take a payment holiday on their mortgage this year, according to the poll of 2,000 British adults.
The proportion of those feeling less financially secure during COVID rises to 63% among the self-employed.
The government’s mortgage support scheme allowing people to take mortgage holidays comes to an end on 31 October. From next month lenders can start repossessing homes of those who have been unable to pay. Those who have taken mortgage holidays will have their missed payments spread over the rest of the payment term meaning larger payments from next month onwards.
Wesley Ranger, managing director at Willow Private Finance said: “This is a ticking time bomb waiting to explode. Millions of mortgage holders in Britain are up for renewal in the next 12 months with changed circumstances. On top of all the other fears at the moment they are having sleepless nights worrying if they will be able to renew or even pay their bills.”