"Mortgages are a substantial financial commitment, and it’s understandable that they can be a source of stress for many homeowners. Our research highlights how common it is for people to feel anxious about monthly payments, renewals, and the impact of interest rate fluctuations"
- Richard Merrett - Alexander Hall
New research from mortgage adviser Alexander Hall shows that for many homeowners, their mortgage is the largest source of financial stress. A survey of over 1,000 UK homeowners found that 66% rank their mortgage as their most significant financial worry, with 60% reporting that mortgage-related concerns have affected their mental health, often resulting in stress, anxiety, and sleepless nights.
The survey highlighted that the most pressing concern is mortgage renewal and potential increases in monthly repayments. Other sources of anxiety include uncertainty over interest rates, economic conditions, the risk of falling into arrears, and the high cost of monthly repayments.
Despite these concerns, Alexander Hall’s research shows some positive trends in the lending landscape. The number of homeowners in arrears fell by 9.1% in Q2 2025 compared to the previous year, continuing a steady decline over the last four quarters. Average monthly mortgage repayments have also stabilised, with the typical homeowner now paying £1,252 per month, 3.9% lower than the same period last year.
While mortgages remain one of the largest household outgoings, these trends suggest improving affordability and reduced financial risk. To help homeowners manage both their mortgage and mental wellbeing, Alexander Hall recommends the following strategies:
Budget carefully: Create a detailed monthly budget that accounts for income, bills, groceries, discretionary spending, and potential mortgage rate changes. Tracking spending over several months can identify areas to save and reduce financial pressure.
Plan for changes: Interest rates and personal circumstances can shift unexpectedly. Reviewing your mortgage in light of potential rate increases, changes in household income, or upcoming life events, and setting aside an emergency buffer of three to six months of essential expenses, can provide peace of mind.
Seek professional advice: Mortgage advisers can guide homeowners through complex products, offering options for better rates, flexible repayment structures, or refinancing. They can also help avoid arrears by navigating lender criteria.
Consider insurance protection: Income protection and related insurance products can cover essential outgoings if unforeseen circumstances prevent you from working, reducing financial stress and protecting mental wellbeing.
Use support networks: Sharing concerns with friends, family, or professional counsellors can provide perspective, practical advice, and emotional support, reducing anxiety and preventing feelings of isolation.
Prioritise self-care: Maintaining routines that support wellbeing, including regular exercise, sufficient sleep, healthy eating, and mindfulness practices, can help reduce stress and improve decision-making. Even small daily habits, like a walk outdoors or brief relaxation exercises, can make a meaningful difference.
Richard Merret, MD of Alexander Hall, commented, “Mortgages are a substantial financial commitment, and it’s understandable that they can be a source of stress for many homeowners. Our research highlights how common it is for people to feel anxious about monthly payments, renewals, and the impact of interest rate fluctuations."
"The positive takeaway is that arrears are falling and affordability is gradually improving. Homeowners can take practical steps to manage their mortgage and protect their mental wellbeing, and advisers like us are here to help navigate the complexities of the market and provide tailored support for individual circumstances.”
