A worrying 1.4 million UK households are struggling to pay their mortgage, according to L&C Mortgages.

The nationwide mortgage adviser also found that 2.6 million people think their monthly mortgage payments are too high.

But many of them could be paying too much on the wrong deal.

Time to switch?

Over half (58%) of borrowers admit they have never remortgaged for a better deal, despite 2.5 million admitting they have been forced to make significant cutbacks to reduce their spending in order to afford their mortgage payments.

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L&C said that these cash-strapped consumers are already having to cope with rising food and energy bills, and a hike in the cost of living generally. In fact, many are ‘just about managing’ to live.

And worryingly, the adviser also revealed that over a third (36%) of homeowners are still on a Standard Variable Rate mortgage (SVR). Not only are these rates typically higher but if interest rates rise, the four million people who are on SVR mortgages could see their payments go up even more. As it stands 1.1 million households are wasting £2.78bn by sitting on the wrong mortgage deal, said L&C.

David Hollingworth, spokesperson for the fee-free broker, said: “The fact that people have been making cuts in order to cover mortgage payments indicates how people feel they are ‘just about managing’ in many aspects of their lives.

“We know that British households last year ran down their savings to a record low and that the cost of basics such as energy and the weekly shop are continuing to rise – so it’s no wonder that people are feeling the pressure when it comes to their monthly mortgage payments.

“The problem is that although people feel they are struggling, they are not taking steps to manage their mortgage. Our research has found that millions are sitting on the wrong deal, even though seeking advice could potentially save consumers some hard earned cash by getting a better deal – and even enable them to pay off their mortgage more quickly.”