35% of UK Workers a Month Away From Being Unable to Pay Mortgage

April 16, 2013

By Lucy Palmer-Richeson

April 16th 2013

One in three people would not be able to pay their mortgage or rent for more than a month if they lost their job, according to a new survey from the charity Shelter.

The charity estimated that 8.6 million of working adults do not have enough savings put by to cover them for more than a month if they lose their job.

A further 4.4 million workers would not be able to pay their mortgage or rent at all if they were not able to secure a new job immediately.

Families with children are most at risk, with 4 in 10 (43pc) of those questioned saying they did not have enough money put away in savings to cover more than a month mortgage or rent,  and nearly a quarter (23%) unable to meet their payments at all if they were made redundant.

Campbell Robb, Chief Executive of Shelter said: “These figures paint an alarming picture of a nation where the buffer between having a home and potentially becoming homeless is a single paycheque.

“Millions are living on the edge of a crisis, only secure in their homes for a matter of weeks. At the same time, support for people who have lost their homes is being stripped away – it’s easy to see why every fifteen minutes, another family in England finds themselves homeless.

“More and more people are coming to Shelter desperate for advice on how they can stay in their homes, and our services are straining to meet the demand. Anyone who can’t meet the payments on their home should seek advice as a matter of urgency,” he said.

Shelter say they are preparing for a surge in demand from people at risk of becoming homeless as Government cuts take effect and the squeeze on family budgets means saving becomes ever tougher.

At InControl, we carry out a full financial assesment and re-classify your spending into priority and non-priority. Your mortgage payments (or rent) are always the first priority together with taxes/food and utilities. Almost everything else can be re-negotiated to fit in with your household budget.