New research highlights growing financial pressures on Brits
The typical UK adult is now £224 worse off each month compared to a year ago, according to new findings from specialist lender Shawbrook.
The bank’s Home A-Loan report also reveals that mortgage holders are experiencing an even greater monthly gap, averaging £262 less than in 2024.
The study indicates that many individuals are taking steps to manage their finances in response to these pressures. Sixty percent have reduced discretionary spending, while a third have reviewed or set up a monthly budget.
A quarter have prioritised emergency savings, and others have considered measures such as switching service providers (19%), taking on additional work (17%), or consolidating debts (15%).
The Shawbrook report also points to a deepening divide in financial wellbeing. While 38% of adults report an improvement in their financial situation over the past year, an equal proportion say they are worse off, suggesting a growing disparity in financial resilience.
The proportion of people feeling worse off has fallen slightly from 41% last year, but many continue to face financial challenges. Older adults and women are particularly affected, with 51% of those aged 55 to 64 and 43% of women reporting a decline in their financial circumstances, compared to 33% of men.
“The widespread financial pressure facing households today is undeniable, with mortgage holders among the hardest hit,” said Steve Griffiths (pictured right), commercial director for retail mortgages at Shawbrook. “However, what is positive is seeing people take proactive steps to improve their financial resilience in all kinds of ways.
“Amid rising costs and declining affordability, tailored guidance is becoming ever more important, especially for first-time buyers navigating a tougher landscape.
“With the right support, borrowers can still achieve their home ownership goals. The key is recognising that a one-size-fits-all approach is just not fit for purpose, and a more personalised strategy is essential to support different types of borrower with their ambitions.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
