Nearly one in five rent or mortgage payers has borrowed money to cover their housing costs including 2 per cent who have resorted to a payday loan.
The research was commissioned by the housing charity Shelter, which said that one in 50 people, equivalent to almost one million people in Britain, said they had taken out a payday loan to help pay the rent or mortgage.
In the past year, the number of people coming to Shelter who can’t pay their rent or mortgage has risen by almost a third, but the actual number is likely to be higher as some people hide their financial problems.
Its research found that one in four people would feel too ashamed to ask for help if they couldn’t cover their housing costs – and even more wouldn’t admit their problems to family or friends.
Liz Clare, a helpline adviser for Shelter, commented: “Falling behind with the rent or mortgage can happen to any of us and it’s nothing to be ashamed of. Times are tough, and we often hear from people who’ve reached crisis point because they haven’t felt able to ask for help earlier.
“Making the first step to ask for help is difficult, but advice from an expert early on can make the difference between losing your home and keeping it.’
Shelter urges people to get advice early for the best chance of keeping their home. Advice can range from negotiating ‘mortgage holidays’ with lenders to helping with realistic repayment plans for rent or mortgage arrears.
Campbell Robb, chief executive of Shelter, said: “Sky-high housing costs, stagnating wages and the high cost of living have taken their toll. The economy as a whole might be on the up, but losing our home could now be a frighteningly real prospect for any one of us.
“Our message today is don’t keep your worries to yourself: Shelter’s expert advisers can be the difference between keeping your home and losing it.”
Shelter’s advice is free as are other organisations such as Step Change and Citizens’ Advice Bureau. Use the free advice agencies rather than paying for the services of debt agencies.
