Majority of Brits aren’t confident in managing their money due to the cost of living crisis
New research from specialist lender Hodge has found that four out of five (80%) respondents aren’t confident in managing their money at the moment – with mortgage, energy and recreational costs all outlined as areas of concern by people across the UK.
As well as a lack of confidence in financial management, the survey found one in five (20%) are considering remortgaging to consolidate debts, and one in three (34%) are factoring in the rising cost of living when it comes to deciding where to live.
Hodge asked 1,000 people how they are managing their finances to help compile its “Cost of Living” whitepaper, produced to help and educate brokers and independent financial advisers about pinch points their customers might be facing.
What has emerged is the need for mortgage brokers, intermediaries and other finance professionals to step up and support customers at a time when consumer confidence is dropping across the board.
Multiple respondents said the cost-of-living crisis meant they were tightening their belts in a variety of ways, including culling tv subscriptions and gym memberships.
The study also found more than half of those taking part overall (54%) said increases in financial pressure were having a negative impact on their mental health.
Emma Graham, Hodge’s business development director for mortgages, said of the findings: “There can be no doubt that we are living in tough times and it’s perhaps not surprising to see confidence in money management low, as well as homeowners eyeing up their mortgages as a way to help them meet rising living costs.
“What’s important to take away from these findings is that everyone within the financial services industry has a greater responsibility than ever to step up and support customers as they come to terms with an ever changing set of circumstances.
“Economically speaking, times aren’t easy for most people at the moment, and the best way to get them the advice and support they need to get through it is by working together, and sharing what we know openly, for the sake of the greater good,” Emma added.
“One of the many ways we are trying to support this effort is by talking to our customers first hand and through conducting research that helps us produce publications like ‘The Cost of Living Whitepaper’, which we hope can support intermediaries in providing their own customers with the help they need at the present time too.”