Announcement
Home-A-loan: The State of the Nations Finances
The UK mortgage market is more fragmented than ever. As financial pressures grow, many people no longer meet the strict criteria of mainstream lenders. That’s where the specialist mortgage market steps in. Shawbrook’s retail mortgage offering – delivered through specialist brands The Mortgage Lender and Bluestone Mortgages, is designed to support customers with complex needs, unique circumstances, or non-standard income. Their combined insights form Home-A-loan, a new report examining how financial insecurity is shaping borrower behaviour.
The State of the Nation’s Finances
UK households remain under intense financial pressure. This latest research shows a nation split: while 38% of adults say their financial wellbeing has improved over the past year, the same number report feeling worse off. This divide points to growing inequality in financial resilience, particularly among older adults and women.
Over half (51%) of those aged 55–64 say their finances have deteriorated, compared to just 18% of 18–24-year-olds. Meanwhile, 43% of women feel worse off, versus 33% of men. These groups are more likely to need lending solutions that account for non-standard income, complex credit histories, or major life changes.
The Cost of Coping
The average adult is now £224 worse off each month than a year ago, rising to £262 for mortgage holders. In response, 60% have cut non-essential spending. Others are updating budgets, switching providers, or taking on extra work. These behaviours reflect financial adaptability, but also show how many borrowers are operating in “survival mode.”
For brokers, this means working with clients who may be more financially informed but under greater emotional and economic strain. Understanding these pressures can help shape more empathetic and practical conversations.
Optimism Amid Adversity
Despite ongoing challenges, 49% remain optimistic about their financial future. Among 25–34-year-olds, that figure rises to 71%. This optimism is often driven by increased financial planning (40%), personal savings (38%) and job stability (34%).
For brokers, this presents an opportunity: by focusing on forward-looking conversations – around affordability, security, and planning. You can help clients turn cautious optimism into action.
Missed Payments and Rising Credit Use
Missed payments are rising sharply. Some 38% of adults missed at least one bill in the past year – up from 24% in 2024. Surprisingly, many of these individuals (51%) are in full-time work.
At the same time, 56% of adults report increased reliance on unsecured credit. For those with complex credit histories, this jumps to 87%. These figures highlight the importance of specialist lending in helping clients rebuild or regain access to affordable credit.
Brokers Bridging the Gap
While 58% have sought support, many remain unsure where to turn. That’s where brokers come in.
“As financial pressures continue to take their toll, customers’ situations will become ever more complex. Brokers have a crucial role to play in this environment, educating customers on the options available to them and empowering them to seek support as needed.” – Steve Griffiths, Retail Mortgages Commercial Director.