32% of homeowners in the UK believes they will have to cut back on spending in 2013 to meet mortgage repayments, according to the latest Legal & General MortgageMood survey.

The quarterly run survey looking at the issues affecting the mortgage market reveals that 66% of respondents are confident they will not have to tighten their belts while 2% are unsure.

Of the third that believe they will need to cut back most believed they would need to reduce the amount spent on hobbies and socialising (82%), clothing (78%) and groceries (68%).

While UK homeowners were less willing to cut back on holidays (11%) or childcare (10%), those in Wales (46%) and the North West (43%) felt the most likely to need to cut back to make ends meet on the mortgage while those in the West Midlands (20%) and East Anglia (23%) were least concerned.

The survey also looked at the aspirations of first-time buyers in the coming year and whether they felt confident they would be able to save for a deposit in 2013. Of those surveyed 44% were hoping to save enough money to put a deposit on a home in the first 6 months of 2013 and 14% were hoping to save enough to be able to make a purchase in the second half of the year while 13% were just happy to start saving for a deposit in 2013.

Meanwhile, 25% of first-time buyers surveyed are looking to pay off debts in 2013 to be ready to start saving for a deposit in 2014.

Ben Thompson, managing director, Legal & General Mortgage Club, said: “It is concerning that a third of UK home owners feel the need to cut back on expenditure in 2013 but it is not entirely surprising considering the uncertainty that continues to beset the economy. Ensuring that homeowners budget appropriately to meet the needs of mortgage repayments is very sensible although the fact that so many intend to cut back on groceries and clothing shows that austerity is still biting up and down the country.

“In a recent report we commissioned in conjunction with CEBR entitled ‘A New Normal in the Housing Market’ we examined when the housing market would return to normal and what that normal would look like. The findings revealed that the housing market will remain broadly flat in 2013 and base rate is unlikely to rise from its current position of 0.5%. However, there are some positive signs,as by mid 2013 house prices should start to climb, reaching their 2007 peak of £227,000 by 2015. The mortgage market does look set to benefit in the first half of the year too from fierce price competition on lower Loan to Value (LTV) products. The number of re-mortgages we see approved is also likely to increase in 2013.”

Thompson added: “It is encouraging that so many first time buyers also seem determined to build up deposits over the course of 2013.Unfortunately the picture is still difficult for them as there will still be a lack of suitable housing supply. House purchase therefore looks set to remain quite flat in 2013 and still significantly lower than historical averages. It would help if the Government were able to increase its focus on building new, affordable homes to help these people get a foot on the ladder.”