The Cost of Living
Britain’s cost of living crisis puts financial pressure on many individuals, families, and communities. The crisis is caused by a number of factors, including rising inflation, energy prices, and taxes. These factors have made it more difficult for people to afford basic necessities like food, housing, and transportation.
The crisis affects different groups in different ways. Low-income households are particularly vulnerable, as they spend much of their income on essentials. The crisis also disproportionately impacts older people, who are more likely to be on fixed incomes.
The crisis has a number of negative consequences. People struggle to meet ends; many must cut back on essential expenses. This is leading to increased food insecurity, homelessness, and debt. The crisis is also having a negative impact on mental and physical health.
The urgency to tackle the cost of living crisis is undeniable. Numerous publications have echoed this sentiment, yet until significant and impactful changes materialise, we will persist in raising this critical issue; the government should take steps to reduce inflation, provide financial assistance to low-income households, and protect vulnerable groups.
Here are some of the key points we cannot ignore:
- The cost of living crisis particularly severely impacts people in North England, where wages and energy bills are lower.
- The crisis is also having a negative impact on the economy, as people are spending less money, and businesses need help to make profits.
- The government has taken steps to address the crisis, such as increasing the minimum wage and providing energy bill rebates—however, more than these measures are needed to offset the rising cost of living.
- Monumental Bank of England interest rates decision to increase the interest rate
Experience the remarkable influence of the latter, shaping our industry like never before. While our recent article “Mortgage Rates Reducing | Extraordinary” reveals a promising decline in interest rates, there’s still a substantial journey ahead to reach our desired destination.
Discover the transformative power that the latter wields, leaving an indelible mark on our industry’s landscape. As we delve into the insights from our informative piece “Mortgage Rates Reducing | Extraordinary,” the glimmer of hope in decreasing interest rates becomes evident. However, the road to our ultimate goal stretches far and wide, and much work must be done.
At Connect Mortgages, we are dedicated to navigating this ever-changing terrain, ensuring that you benefit from the most favourable options in the market. Our commitment to staying at the forefront of industry developments allows us to secure your best rates and terms. Trust in our expertise and unwavering support as we strive to bridge the gap between the present and the future you envision.
Join us in embracing the transformative potential of the latter as we steer towards a brighter, more prosperous horizon. Together, we’ll forge a path that leads to your financial success. Let’s make your dreams a reality; contact us today to embark on this exciting journey.
What are the concerns that need to be addressed?
According to Pepper Money’s Specialist Lending Study conducted in partnership with YouGov, a staggering 71% of UK adults express deep concerns about their financial situation in light of the ongoing crisis. Moreover, a significant 81% believe that securing a mortgage amidst the current economic climate will be a challenging endeavour.
Adding to these troubling statistics, a recent study by Which? in May uncovered distressing news. As many as 7.3% of households, equivalent to a staggering two million households, experienced the burden of missing or defaulting on essential payments, including mortgages, rent, loans, credit cards, or bills, in April 2023.
These alarming findings paint a concerning picture of the current financial landscape, highlighting the pressing need for proactive measures and support. As economic challenges continue to impact the lives of countless individuals and families, it becomes evident that decisive action must be taken to address the growing cost of living crisis.
What’s next?
Over the past couple of years, numerous individuals have faced challenging circumstances, pushing them towards an increased reliance on unsecured credit borrowing due to the cost of living. Unfortunately, this has heightened the risk of missed payments, creating a significant burden on customers and potentially leading to defaults or CCJs, which, in turn, can hinder their chances of securing a mortgage.
Mortgage brokers’ assistance and expertise are more crucial than ever in these trying times. We at Connect Mortgages cannot do much about the cost of living crisis, but what’s in our remit is the understanding of the complexities of these situations, and we are here to lend a helping hand. Even if you have CCJs or Defaults registered as recently as six months ago, we can provide solutions to support you.
Even during the cost of living crisis, everyone deserves the opportunity to achieve their homeownership dreams, and our team at Connect is dedicated to providing flexible and tailored solutions to make this a reality. By working together, we can empower those facing financial challenges, offer them hope for a brighter future, and help them navigate the path to financial stability. Don’t hesitate to connect with us today and allow us to make a real difference in your lives during these difficult times.
