Richard Harrison, head of mortgages at Atom Bank, notes that around 2.5 million people are in debt to their water company and that this can be enough to push them out of the prime mortgage category.
April is particularly painful for many of us this year, courtesy of the range of different household bills being hiked. And few are quite as eye-watering as water bills, which have jumped by an average of 26%. That equates to more than £10 a month extra on average, though the regional variances mean that some people will be facing even stiffer bill increases. It's yet another hit to the household budget, and off the back of a few years which have been particularly testing for any family trying to make the sums add up. It also brings into focus a challenge that brokers are increasingly having to help their clients navigate - the legacy of rising bills, and how a short-term financial wobble can lead to long-term consequences. After all, the Consumer Council for Water reckons that around 2.5 million people are in debt to their water company, no small figure. For some households, this will be part of a wider pattern of financial strain. But for many others, the issue is more isolated. It was a temporary setback, now resolved, but one that has left a mark on their credit profile. That mark can be enough to push them out of the prime mortgage category, even if everything else about their financial position is in good shape. A missed payment shouldn't mean missed opportunities Over the past few years, we've seen a steady increase in household bills across the board, from energy and water to Council Tax and food. For many borrowers, just keeping on top of everyday outgoings has become a juggling act. The result is that more people have experienced…