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Third of homeowners need an extra £1,000 per month to afford a mortgage

  • 16/08/2023
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Third of homeowners need an extra £1,000 per month to afford a mortgage
Just over 32 per cent of homeowners say they need an additional £1,000 per month to meet rising mortgage costs, a survey has found.

Research carried out by recruitment firm Aspire, which surveyed around 1,100 jobseekers, around 31 per cent said that they would need to earn between £500 and £1,000 extra per month to keep up with climbing mortgage costs.

Over a quarter thought that they would need £300 to £500 more a month, and one in 10 said they could meet higher mortgage rates with a pay rise worth up to £300 or more each month.

The report continued that around 61 per cent were concerned about their ability to secure a mortgage or remortgage.

A further 60 per cent are actively seeking new jobs in order to secure pay rise offers to offset rising mortgage costs.

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.”

He 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.”

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