Home Business News Soaring mortgage rates spark job searches as ‘homeowners need an extra £1,000 a month’

Soaring mortgage rates spark job searches as ‘homeowners need an extra £1,000 a month’

by LLB Finance Reporter
18th Aug 23 11:20 am

Many homeowners are struggling to keep up with spiralling mortgage costs and a third (32.5%) say they will need to earn £1,000 more a month to bridge the gap.

These worries have led (60.1%) people to actively seek a new job. With finances under pressure, securing a pay rise offers the opportunity to offset rising mortgage costs.

This is according to research carried out by Aspire, a recruitment agency, which surveyed over 1,100 jobseekers to understand the key trends impacting the world of work.

With the Bank of England base rate increasing 14 times since February 2022, interest rates on mortgages have also been pushed out of reach for many.

As a result, the majority (60.7%) of workers are particularly concerned about their ability to secure a mortgage or remortgage.

Of these, around a third estimate that they would need to earn upwards of £1,000 a month more to afford their mortgage payments. Another third (31.3%) say that they would need to earn between £500-1,000 extra per month to keep up with climbing mortgage costs.

Meanwhile, over a quarter (27.65%) suggest they would need £300-£500 more, and just one in ten (8.5%) could meet higher mortgage rates with a pay rise worth up to £300 per month.

Responding to the news, Aspire’s Global Managing Director, Terry Payne, said, “Inflation continues to impact every area of the economy. The knock-on effect on mortgage rates is hard to ignore, with homeowners feeling the squeeze.

“These financial pressures are contributing to an increase in active jobseekers. In recent months, our recruitment specialists have seen an uptick in applications for roles we’re advertising. And we’re seeing strong demand from businesses, too – a reflection of the fact that there are currently over a million open vacancies across the UK.

“The impact of the mortgage crisis could spark significant jobs movement. And if the Bank of England base rate continues to climb, the trend could well continue as homeowners look to secure higher-paying jobs.

“Others not ready to change jobs just yet may request pay rises from their employer – though some might struggle to meet increased salary expectations.”

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