A Money and Mental Health Policy Institute study found that soaring mortgage repayments severely harm mental health. About 1.3 million mentally ill people have cut out on meals to pay their mortgages. The institute, created by money-saving expert Martin Lewis, urges lenders to actively identify and contact consumers with repayment issues.
Soaring Mortgage Repayments Take Toll on Mental Health
Three in ten mortgage holders have mental health issues because of soaring mortgage repayments, especially due to the interest rate hike over the past year, according to studies. These people are more likely to cut food, energy, and medicine to pay for larger mortgages, putting them in danger of falling behind on expenses.
The survey also found that many affected homeowners were unaware of the Mortgage Charter, a commitment signed by most lenders to help distressed homeowners. A YouGov poll found that 70% of respondents were unaware of this charter and believed their lenders failed to communicate support.
The Money and Mental Health Policy Institute CEO, Conor D’Arcy, stressed that lenders must identify and contact those most at risk of significant interest rate consequences. The institute recommends notifying and reminding customers about support, training workers to help mental health patients, and making support widely accessible.
Lenders Must Address Mental Health Impact Amid Soaring Mortgage Repayments
The study also showed how threatening letters and texts during repayment issues affect borrowers’ mental health. The institute urges lenders to act now to avert hardship and financial harm and raise awareness of mental health help and specialized aid.
Lenders must act now to reduce the stress and anxiety caused by “Soaring Mortgage Repayments” on impacted individuals’ mental health.