The YouGov research, that looked into British attitudes towards credit as well as strains on personal finances, found one in twenty adults (5 per cent) between the ages of 45 and 54 won’t be able to pay their mortgage if their monthly income dropped by up to £100.
Also, 12 per cent of all adults wouldn’t be able pay their mortgage if their monthly income dropped by up to £300.
With 28 per cent of Brits worried that a salary freeze or reduction will have a significant impact on their finances in the coming year, and that figure rises to 55 per cent for public sector employees.
A further cause for concern for 59 per cent of adults is rising food prices while 59 per cent are worried about VAT increases, which may significantly impact on their personal finances.
“These figures are extremely alarming” said Graham Lund, managing director of Callcredit. “A significant amount of people are living at the edge of their financial limits, and may struggle to make mortgage repayments if incomes reduce or if another event impacts their finances – something that many adults consider a real possibility in 2011. This shows just how important it is for lenders to have a complete view of customer finances.”
“It’s crucial, for both lenders and consumers, that financial service organisations are using the right tools to recognise when individuals are on the verge of over-indebtedness or are unable to afford credit – including having sight of accounts held with other lenders. This holistic customer view will help to support both responsible lending and responsible borrowing and is essential in stabilising the consumer and business economy.