Insights ¦ Public Financial Lives 2024 survey Mortgages Selected findings

Published by: Financial Conduct Authority

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Key Take Aways

• Mortgage ownership remains substantial but has experienced slight declines, with 27% of adults holding residential mortgages in 2024, down from 31% in 2017.
• The proportion of adults on fixed-rate mortgages has increased significantly, reaching 83% in 2024, reflecting a marked shift from 62% in 2017.
• Among mortgage holders, 82% predominantly have repayment mortgages, though interest-only and part interest-only products persist, especially among older consumers.
• Median mortgage debt remains between £100,000 and £150,000, with mortgage debt as a proportion of property value decreasing to 39%, but 17% of holders owe at least four times their household annual income.
• Homeownership has declined among younger cohorts; only 28% of 18–24-year-olds own outright or with a mortgage, against 55% for 65+.
• Non-homeowners with aspirations to own a property are high (55%), but more than a third anticipate it could take more than five years to save a deposit.
• Financial support from family remains prevalent, with 42% of non-homeowners receiving or expecting it, yet fewer adults are benefiting from or holding lifetime and help-to-buy ISAs.
• Confidence in mortgage providers is waning slightly; 20% of mortgage holders from minority ethnic backgrounds report low trust, higher than the 18% among non-minority groups.
• Satisfaction levels with mortgage lenders remain largely positive, yet around 30% of borrowers from minority ethnic groups and low-resilience groups express low satisfaction.
• Problems experienced in the last 12 months have risen slightly to 12%, with high fees, unexpected changes, and poor customer service most common.
• Only 13% of those with serious problems lodged complaints, citing complexity or perceived futility as barriers.
• There is evidence of shifting borrower behaviour: the use of brokers remains significant, but trust and satisfaction are declining, with fewer buyers recalling high-quality advice or impartiality.

Key Statistics

• 27% of UK adults held a residential mortgage in 2024, down from 31% in 2017.
• Fixed-rate mortgages account for 83% of residential holdings in 2024, up from 62% in 2017.
• 82% of mortgage holders have repayment mortgages; interest-only remains at 11%.
• Median mortgage debt remains between £100,000 and £150,000.
• 17% of mortgage holders owe at least 4 times their annual household income.
• Active homeowners decline among 18–24 age group (28%) versus 55+ (55%).
• 55% of non-homeowners aspire to own, but 42% expect it will take >5 years to save a deposit.
• 42% of non-homeowners saving for a deposit hold or plan to hold ISAs; this is a decline from 43% in 2022.
• 73% trust their mortgage lender moderately or highly, down from 77% in 2022.
• 12% of mortgage holders experienced problems in the last year, primarily related to fees and charges.
• Only 13% of those with problems lodged complaints; costs and hassle cited as barriers.
• 57% of mortgage changers sought advice from a broker; trust levels decreased from 2022.

Key Discussion Points

• The evolution of mortgage product types highlights a clear pivot towards fixed-rate products, reflecting market risk aversion.
• Declining ownership among younger demographics underlines the ongoing challenge of housing affordability.
• A significant proportion of non-homeowners aspire to buy but face prolonged deposit savings timelines.
• Family financial support remains vital but is contracting; use of ISAs is declining, impacting early-stage buyers.
• The rising proportion of debt at four times household income signals ongoing affordability concerns.
• Borrower confidence in providers, especially among minority and vulnerable groups, continues to wane.
• Despite high trust in brokers, satisfaction and perceptions of impartiality show signs of erosion.
• The increase in product-related problems emphasizes the importance of transparency and service quality.
• Retail investor or borrower behaviour indicates a preference for fixed rates, but with rising awareness of rate increases at deal end.
• Consumer experience with switching and advice remains positive but shows signs of fatigue and scepticism.
• The survey underlines the importance of clear, accessible advice and the need to address barriers to switching.
• Increasing complexity in the mortgage market warrants ongoing regulatory focus to protect vulnerable and minority consumers.

Document Description

This article provides a comprehensive overview of the Financial Lives survey’s insights from 2024, focusing on the evolving landscape of mortgages among UK consumers. It analyses product holdings, debt levels, ownership aspirations, and borrower experiences, including switching behaviour, advice utilisation, and trust levels. The piece explores demographic and vulnerability-related disparities, presenting data that inform strategic and regulatory considerations for financial services providers engaged in mortgage lending and advice. It offers a detailed snapshot of market trends, consumer confidence, and emerging challenges within the mortgage sector from a consumer-centric perspective.