Emma Jackson: Empowering employee wellbeing through mortgage education – a guide for leaders

The rising cost of living and fluctuating interest rates have made homeownership an increasingly daunting prospect for many employees. This financial strain can have a ripple effect, impacting their job performance, mental health, and overall wellbeing.

Studies show that employees experiencing financial stress are more likely to suffer from anxiety, depression, and even burnout, leading to decreased productivity and increased absenteeism. The emotional toll is significant, with workers reporting a loss of focus and heightened stress, which can affect their day-to-day performance.

As Richard Branson famously advises, “If you look after your employees, your employees will look after your business.” A quote that is quite possibly overused, but nonetheless meaningful.  By providing accessible mortgage education, leaders can equip their employees with the knowledge and tools to navigate these challenges.

Not only does this contribute to greater financial security for employees, but it also fosters a more resilient and engaged workforce. Research shows that companies prioritising financial wellbeing see improvements in employee satisfaction, retention, and overall company performance.

By addressing these critical issues, particularly around homeownership, leaders can create a supportive environment that not only alleviates financial stress but strengthens employee loyalty and productivity.

The Ripple Effect of Financial Stress

Financial stress is pervasive. While salaries and benefits are a common part of retention strategies, the day-to-day stress employees experience managing their finances—particularly mortgages—can create a cycle of anxiety that impacts everything from job satisfaction to performance. According to research by The Exeter, 52% of employees admit to worrying about their finances during working hours. This pressure, when left unaddressed, leads to deteriorating mental health, reduced focus at work, and even absenteeism.

In the past few years, as interest rates climbed, many homeowners saw their mortgage payments rise exponentially. We’ve witnessed firsthand the mental and emotional toll this has taken on employees across industries, with many displaying signs of significant distress—fearful of how they will meet their financial obligations each month. At Prestige Private Finance, we’ve supported clients through these challenging times by renegotiating mortgage plans to reduce monthly payments, easing the financial burden.

We recently worked with an employee who was facing rising monthly mortgage payments due to extreme fluctuations of the market in recent years. They had a family and were severely anxious about how they were going to be able to keep their home. After negotiating a longer fixed-term plan, their payments were reduced by more than £1,000 per month, giving them some much-needed breathing space. They reported that the financial relief allowed them to regain focus and reduce anxiety, both at work and at home.

Practical Steps Leaders Can Take to Address Mortgage Stress

So how can leaders make a real difference? It starts with recognising the direct link between housing security and mental wellbeing and implementing tangible strategies that help employees take control of their mortgage decisions. Here are actionable steps leaders can start taking today:

1. Host Regular Mortgage Workshops

Bringing in mortgage experts to provide clear, actionable advice on topics like buying a home, refinancing, and navigating mortgage options is one of the most effective ways to reduce financial stress. Consider hosting quarterly workshops or ‘Lunch & Learn’ sessions that offer employees a chance to ask questions and get personalised advice.

By offering a workshop where employees can book one-on-one sessions with a mortgage advisor after the group talk, employees often report it being the first time they have truly understood their mortgage options, and the one-on-one sessions helped them map out a clear plan.

2. Offer Digital Resources for Ongoing Learning

Not every employee can make it to an in-person event, and mortgage decisions evolve over time. By providing access to digital resources—like calculators, mortgage guides, and FAQs—you ensure employees have the tools they need when they need them. These resources can be housed on a company intranet, via a dedicated landing page, or sent out in newsletters, allowing employees to engage with them at their convenience.

A recent survey by Bank of America found that a striking 84% of employees felt more in control of their finances when they had access to digital financial wellness tools. This increase in financial confidence has been linked to reduced stress levels and greater productivity, highlighting the impact of financial wellness programmes in helping employees manage their finances more effectively.

This trend underscores how critical these tools are in the workplace, enabling employees to address financial challenges and contributing to a more engaged and focused workforce.

3. Create an Anonymous Support System

Financial struggles can be deeply personal, and many employees may be reluctant to discuss them openly. One way to support employees without breaching their privacy is to create anonymous surveys or feedback systems to assess their needs. By doing so, you can identify the most pressing financial concerns—whether it’s about deposits, interest rates, or affordability issues—without putting anyone on the spot.

4. Tailored Mortgage Education for Different Life Stages

A key oversight in many financial wellbeing programmes is the failure to acknowledge that mortgage education isn’t one-size-fits-all. First-time buyers, families looking to upsize, and employees considering retirement all face different challenges. As a leader, you can segment mortgage education initiatives by life stage, making the advice more relevant and impactful.

We find it useful to divide our workshops into different groups that best suit the individual —first-time buyers, movers, and those looking to remortgage – for example. The feedback is overwhelmingly positive because employees felt the advice was tailored to their specific situation. One attendee recently said, “It was great to be in a session with advice that really applied to me and my life stage.”

Building Trust Through Financial Wellbeing

Mortgage education is not just about offering information—it’s about building trust. When employees feel their leaders care about their personal and financial growth, they develop a deeper sense of loyalty and engagement. Research has shown that companies with strong financial wellbeing initiatives see improved retention rates and higher levels of employee satisfaction.

Leaders who invest in this area are making a long-term commitment to their workforce. Offering mortgage support shows you understand the bigger picture: that employee wellbeing extends beyond the office walls, into their homes and personal lives.

The Long-Term Impact on Business Performance

The link between financial wellbeing and business performance is undeniable. Employees who feel financially secure are more likely to be engaged, focused, and productive. They take fewer days off due to stress-related illness and are less likely to leave in search of higher pay or more stability elsewhere.

A study by Aegon, in collaboration with the Centre for Economics and Business Research (CEBR), found that financial worries cause UK workers to miss over four million days of work each year, and an additional loss of productivity amounts to £1.56 billion annually for UK businesses. Furthermore, research by Close Brothers suggests that businesses investing in financial wellbeing strategies see a significant impact on employee retention and performance.

Leaders who prioritise financial wellbeing, especially around critical issues like mortgages, are setting their organisations up for long-term success. Today’s leaders must balance empathy with business acumen, and by investing in mortgage education, they not only meet an urgent employee need but also cultivate a workplace where both employees and the organisation can thrive.