The latest insight from award-winning mortgage adviser, Alexander Hall, has shown that for the majority of homeowners, their mortgage is their single largest financial worry, with 60% stating that their mortgage worries have impacted their mental health at one point or another.
The survey of over 1,000 UK homeowners, commissioned by Alexander Hall, found 66% of homeowners rank their mortgage as their most significant financial worry.
Of those surveyed, 60% stated that, at one point or another, worries over their mortgage had impacted their mental health, most commonly leading to stress, anxiety and sleepless nights.
The most significant worry was the dreaded renewal and the potential increase to their monthly mortgage repayments, whilst general uncertainty around interest rates and the economy, along with the risk of falling into arrears and the current high cost of their monthly repayment also ranking highly.
However, further research by Alexander Hall shows that improvements to the lending landscape should help alleviate some of the worries impacting homeowner mental health.
The latest figures show that the number of homeowners falling into arrears has declined of late, falling by 9.1% in Q2 2025 compared to the previous year, marking a steady decrease over the last four quarters.
Average monthly mortgage repayments also demonstrate a stabilising trend. The typical homeowner now pays £1,252 per month, which is some 3.9% lower compared to this time last year.
Despite mortgages remaining one of the largest monthly outgoings for many households, these trends suggest improving affordability and reduced risk. However, for many, their mortgage remains the most significant financial commitment they have and to help homeowners manage both their mortgage and mental wellbeing, Alexander Hall recommends the following tips:
Budget carefully - Create a detailed monthly budget that maps your income against all outgoings, including bills, groceries, and discretionary spending. Factor in your potential mortgage rate increases, and any irregular costs to understand what you can comfortably afford. Tracking your spending over a few months can help identify areas to save and reduce financial pressure.
Plan for changes - Interest rates and personal circumstances can shift unexpectedly. When reviewing your mortgage, consider potential rate increases, changes in household income, or upcoming life events. Setting aside an emergency buffer, such as three to six months of essential expenses, can provide peace of mind and protect your mental health during times of uncertainty.
Seek professional advice - Mortgage products can be complex, and the right guidance can make a significant difference. Speaking with a mortgage adviser allows you to explore options for better rates, flexible repayment structures, or refinancing. They can also help you navigate lender criteria, ensuring you maximise your borrowing potential and avoid unnecessary stress. If you are struggling to meet your monthly payments and fear you might fall into arrears, your mortgage provider should be the first person you speak to, as they will always work with you to try and avoid this happening.
Consider insurance protection - Income protection and related insurance products can provide a safety net if you are unable to work due to illness or unforeseen circumstances, helping cover essential outgoings such as your mortgage. Awareness and planning around these products can reduce financial stress and give peace of mind. Alexander Hall offers guidance on the options available and how they can complement your mortgage planning.
Use support networks - Financial stress doesn’t need to be faced alone. Sharing concerns with friends, family, or professional counsellors can provide perspective, practical advice, and emotional support. Talking openly about worries often helps reduce anxiety and can prevent feelings of isolation.
Prioritise self-care - Managing your mental health is just as important as managing your finances. Maintain routines that support wellbeing, including regular exercise, sufficient sleep, healthy eating, and mindfulness practices. Even small daily habits, like a walk outdoors or brief relaxation exercises, can significantly reduce stress levels and improve your ability to make clear financial decisions.
MD of Alexander Hall, Richard Merret, 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.”
