One in three homeowners requires over £1,000 a month extra to pay off mortgages, according to new research.
A survey of 1,100 jobseekers carried out by recruitment agency Aspire has revealed many workers are concerned about their ability to get a mortgage or remortgage.
Due to the Bank of England raising the base rate 14 consecutive times since February 2022, homeowners are “feeling the squeeze” financially.
Currently, the base rate is at 5.25 percent and many predict it to reach as high as six percent by the end of the year.
According to Aspire’s survey, around a third of respondents estimate that they would need to earn upwards of £1,000 a month more to afford their mortgage payments.
Furthermore, some 31.3 percent admit that they would need to earn between £500 to £1,000 extra per month to keep up with climbing mortgage costs.
Just over a quarter of those polled by the company suggest they would need £300 to £500 more.
Less than one in ten believe they could meet higher mortgage rates with a pay rise worth up to £300 per month.
In light of these concerns, 60.1 percent have begun to actively search for a new job to facilitate their financial predicament.
Terry Payne, Aspire’s Global Managing Director, outlined why rates are going up and why homeowners should prepare.
He explained: “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.”
Noting the consequences of the UK’s current shambolic economy, Mr. Payne warned of changes within the workforce.
The recruitment expert added: “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.”