A new study from Money Expert reveals that 42% of UK households plan to cut back on non-essential spending to meet their mortgage repayments.

Of the 1,000 people who took part in the study, almost two thirds (63%) say they will need to remortgage their home within the next 12 months.

Meanwhile, 37% say they have signed up to a new mortgage within the last six months.

The data also showed that for 18% of homeowners, mortgage repayments have become unaffordable due to the rise in rates.

Only 13% say they are not concerned about the increases in their repayments.

When asking borrowers what they’re most likely to spend less on, visiting restaurants tops the list, with over half (52%) suggesting they will cut back on dining out.

The survey reveals that 46% of households will cut their spending on travel, while 42% will look to save money by reducing costs on non-essential clothes and footwear.

Over a third (35%) say they’ll cut back on visits to salons and beauty treatments and 28% say they will delay purchasing a new vehicle due to the rising repayments.

The survey asked how much disposable income households had to spend once all bills and expenses were settled, prior to and post remortgaging their homes.

Overall, 29% say they have a disposable income of between £300 and £500 per month, while 27% have between £100 and £300.

Money Expert commercial director Liz Hunter says: “Many UK homeowners are having a tough time financially, with issues relating to the cost of living alongside rising costs in energy bills that continue to put a squeeze on household spending.”

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