The number of UK homeowners with more than £300,000 left to repay on their mortgage has nearly doubled in the past seven years, highlighting the growing financial strain many are facing, amid high property prices and rising interest rates. New analysis of the Financial Conduct Authority’s (FCA) Financial Lives Survey reveals that 9% of mortgage holders now owe over £300,000 – up from just 5% in 2017. In areas with the highest house prices, such as London and the South East, the proportion jumps significantly. Today, 28% of homeowners in these regions owe over £300,000, compared with 17% seven years ago. The analysis reveals a growing trend of homeowners taking on substantial mortgage debt, while household incomes have failed to keep up with rising property prices. In addition, the recent surge in mortgage costs has intensified financial pressure - especially in regions where borrowing was already high. Stretching affordability Most lenders cap borrowing at around four-and-a-half times a borrower’s annual income. But the data shows that one in seven homeowners now hold mortgage debt worth at least four times their income – a notable increase from 11% in 2017. Although this is down slightly from the 2020 and 2022 peak of 16%, it suggests many homeowners have little headroom left. The figures present a concerning picture, especially considering how many borrowers still neglect to shop around for more competitive mortgage deals. Even modest reductions in interest rates can lead to significant long-term savings over the course of a mortgage. Wider signs of financial strain The FCA survey paints a broader picture of financial vulnerability across the UK. One in 10 people reported having no savings at all. Almost a quarter of respondents were classed as having low financial resilience. Sarah Pritchard, Executive Director of Consumers and Competition at the FCA, acknowledged the pressures many households are facing. “FCA data shows that finances are stretched for many,” she said. “But there are improvements – more people with current accounts and less digital exclusion. Our strategy will build on this to help people better navigate their financial lives.” Looking ahead With mortgage debt levels rising and many homeowners close to their borrowing limits, it’s vital to review your finances regularly and seek professional advice to avoid long-term financial strain. Your home may be repossessed if you do not keep up repayments on your mortgage. Sources: https://www.yourmoney.com/mortgages/proportion-of-homeowners-with-over-300000-left-to-pay-off-on-mortgage-nearly-doubles/ https://www.fca.org.uk/publication/financial-lives/financial-lives-survey-2024-key-findings.pdf

Nearly two-thirds of UK homebuyers faced unexpected costs in the past year, according to recent research. First-time buyers were hit hardest, with 66% encountering surprise expenses, compared to 55% of movers. The survey of over 1,000 buyers found costs such as legal fees, repairs and one-off charges often disrupted the process, with 27% naming these the most frustrating part of the home buying process. Conveyancing costs also climbed, with £1.9bn spent in 2024, up 17% on the year before. Yet despite rising conveyancing fees, unexpected costs proved most stressful for buyers. The research highlighted the need for better education around home purchase costs beyond legal fees and mortgage costs. Your home may be repossessed if you do not keep up repayments on your mortgage Source: https://www.ftadviser.com/mortgages/2025/5/29/two-thirds-of-homebuyers-stuck-with-unexpected-costs/

Almost half a million homeowners coming off five-year fixed rate mortgage deals taken out in 2020 could see a major spike in their monthly mortgage repayments. These borrowers have been paying an average interest rate of just 2.11%. However, if they revert to their lender’s standard variable rate (currently averaging 7.13%) when their deal comes to an end, their monthly repayments could soar to £1,227 on average, a jump of £510 a month or another £6,000 a year. Although rates have eased from recent peaks, they remain higher than the ultra-low levels seen during the pandemic. Borrowers who secured low-cost deals in 2020 are likely to face a payment shock. As a result, we advise shopping around, with our help, rather than automatically switching to your lender’s standard variable rate. Locking in a new five-year fixed rate at 4.33% could save over £3,600 a year, while a two-year fix at 4.6% could save around £3,290. It’s important to review your options early. Many lenders allow borrowers to secure a new deal up to six months in advance, helping to avoid last-minute panic and potentially saving thousands in the process. Your home may be repossessed if you do not keep up repayments on your mortgage Source: https://www.yourmoney.com/mortgages/remortgage/nearly-half-a-million-homeowners-could-see-substantial-increase-in-monthly-mortgage-payments/

House prices crept up again in May, with Nationwide reporting annual growth of 3.5%, slightly above April’s 3.4%. Prices also rose 0.5% month on month, once seasonal factors were taken into account. There was a surge in property transactions in March, as buyers rushed to complete purchases ahead of higher Stamp Duty charges. The number of owner-occupier completions was double the usual level and the highest since June 2021. Despite the end of the Stamp Duty holiday, Nationwide believes the housing market is holding up well. Mortgage approvals remain steady and the backdrop for buyers is still broadly supportive. Lower interest rates in the months ahead could help ease borrowing costs further. Your home may be repossessed if you do not keep up repayments on your mortgage Source: https://www.nationwidehousepriceindex.co.uk/reports/annual-house-price-growth-edged-higher-in-may https://www.zoopla.co.uk/discover/property-news/house-price-index/

Are you considering making mortgage overpayments? Here’s what to consider. If you can afford it, there are many advantages to overpaying your mortgage, such as: - Becoming a step closer to being mortgage-free - Reducing the amount of interest you owe - Lowering your loan-to-value ratio (LTV). However, before you make overpayments it’s vital to check the following: - Is there an early repayment charge (ERC)? Many lenders allow borrowers to pay off 10% of the mortgage balance each year without a fee, but you must double check the terms of your deal. - Do you have other debts that you should settle first? - Would it be more beneficial to place your extra cash elsewhere, such as a savings or pension pot? Your home may be repossessed if you do not keep up repayments on your mortgage

Home insurance premiums are rising, due to construction costs and claims linked to extreme weather. According to recent data, the average cost of a combined buildings and contents insurance policy increased 8.5% in the past year. Premiums remain highest in Northern Ireland and London, while they are cheapest in the North East. Property size also affects cost significantly, with policies for larger homes often more than double those for smaller properties. Rebuild costs The increase in premiums reflects rising rebuild costs. Material shortages, higher labour costs and inflation have all pushed up the cost of construction. Changes to environmental and building regulations have also added complexity and expense to home repairs and rebuilds. In areas affected by storms or flooding, claims have become more frequent and costly, prompting insurers to raise premiums to cover the increasing risk. Time to review It’s worth reviewing your existing policy to check whether it reflects the current cost of rebuilding your home, as the amount covered under an outdated policy may fall short of the true cost of rebuilding today. Why not contact us for an insurance review today. As with all insurance policies, conditions and exclusions will apply. Sources: https://www.yourmoney.com/insurance/home-insurance-premiums-rise-due-to-rebuild-costs/ https://www.actioninsurancerepair.co.uk/blog/the-impact-of-rising-construction-costs-on-property-insurance-claims https://www.checkatrade.com/blog/cost-guides/rebuild-house-cost/

One in ten divorcees have forgotten to remove their former partner as a beneficiary on their life insurance policy according to research by Legal & General. The research also says just 7% of couples discussed life insurance during separation, while only 6% formally waived rights to joint cover. Failing to update financial arrangements can lead to costly errors, including ex-partners inheriting unintended assets. The research noted just 11% of divorcees reviewed their Wills, only 4% took out critical illness cover and 3% took out income protection policies post-divorce. It’s really important for anyone going through a separation to be fully aware of the financial implications of divorce and to consider who they want to benefit from any life insurance. As with all insurance policies, conditions and exclusions will apply. Source: https://www.yourmoney.com/insurance/a-tenth-of-divorcees-have-forgotten-to-remove-former-spouse-as-life-insurance-beneficiary/

More than two million UK mortgage holders would be facing financial distress if their income suddenly stopped. That’s the key finding from a recent study by LifeSearch & Homeowners Alliance, which found 36% of mortgage holders – roughly 2.34 million people – have no financial protection such as life insurance, income protection or critical illness cover. While two-thirds of respondents said they had discussed mortgage protection with advisers, lenders or family, only 16% had taken out an income protection policy. Almost half those surveyed said they would struggle with mortgage payments within six months if they lost their income. One in five said they would face difficulties in two months. Taking action The study highlights a worrying gap between intention and action. While many mortgage holders have spoken to someone about taking out protection cover, far fewer have actually taken steps to put insurance in place – leaving themselves and their homes vulnerable to life’s unexpected events. Paula Higgins of the Homeowners Alliance said, “Without a safety net like income protection, a sudden illness or job loss could lead to devastating consequences.” Your home may be repossessed if you do not keep up repayments on your mortgage. As with all insurance policies, conditions and exclusions will apply. Source: https://www.propertyreporter.co.uk/over-2m-uk-mortgage-holders-are-one-paycheck-away-from-crisis.html

According to Moneyfacts, the number of low-deposit mortgages available at 90% and 95% loan-to-value (LTV) has reached its highest level since 2008, with 1,287 products on offer at the time of writing. In April, there were over 400 deals at 95% LTV and over 800 deals at 90% LTV, signalling growing lending support for buyers with smaller deposits. The number of mortgages available for those with larger deposits also improved, up from 778 in March to 797 in April. Noting the number of 95% LTV deals represents just 6% of all deals available to borrowers across fixed and variable mortgages, Moneyfacts’ Rachel Springall called the increase “a healthy step in the right direction”. Your home may be repossessed if you do not keep up repayments on your mortgage. Source: https://www.yourmoney.com/mortgages/options-for-low-deposit-mortgages-hit-17-year-high/