The industry where 76% of employees struggle with their mortgage repayments

The industry where 76% of employees struggle with their mortgage repayments and homeowners may struggle, according to analysis of mortgage data by Uswitch.

Key points from publication:

• 51% of UK employees are not on fixed rate deals, so their mortgages may be affected by rising interest rates
• 76% of human resources employees have struggled to keep up with their mortgage repayments in the last year
• Despite earning the second highest average income, 59.50% of IT & Telecoms employees struggled to match their monthly mortgage repayments
• Education employees are least likely to struggle with their mortgage repayments
• You can find more details at Uswitch’s mortgage statistics.

UK homeowners may struggle with renewed uncertainty this week, after predictions that the Bank of England could increase interest rates to 6% in the first half of 2023. 

Over 40% of homeowners are already struggling to keep up with repayments, according to Uswitch.com, and those without a fixed-rate mortgage could see their bills increase more.

While some companies have introduced benefits to help workers with rising costs, some employees may feel the strain of the worsening cost-of-living crisis more than others.

As part of their mortgage statistics report, Uswitch.com is highlighting the current landscape for homeowners across different industries. The results show which industry’s employees struggle most with their mortgage repayments, and which industries may see further struggles in light of increased interest rates.

The homeowners without a fixed rate mortgage, by industry:

Source: Uswitch.com 

Only 60% of employees in the Human Resources sector are on fixed-rate mortgages, according to Uswitch.com. That means four in ten (40%) HR employees could have their mortgage repayments increased due to rising interest rates. 

More than three in four (76%) HR employees have struggled with their mortgages in the last year, the most across any industry – and this is very likely to rise as interest rates increase in 2023. Current interest rates prevent one in five (19.05%) HR employees from switching to a better mortgage deal. This is the third highest percentage behind IT & Telecoms (26.88%) and Arts & Culture (21.05%). 

Generally, the more industry employees without a fixed-rate mortgage, the more likely they are to struggle to pay their monthly repayments. 

IT & Telecoms employees are only slightly more likely to be on a fixed-rate mortgage, at 60.33%. Almost two in five (39.67%) could potentially experience a price increase after interest rates rise. Over a quarter (26.88%) said high-interest rates had already stopped them from remortgaging to a better deal, the most of any industry.

Employees in the Sales, Media and Marketing industries are the third most likely to struggle with their mortgages in 2023. Only 63.46% are on a fixed-rate mortgage and will not be affected by rising interest rates. That means more than a third (36.54%) of employees could have even more difficulty in paying their mortgages in 2023.

HR employees struggle the most:

Source: Uswitch.com 

Homeowners working in human resources have struggled the most with their mortgage repayments in the past year out of all 12 sectors analysed. Almost eight in ten (76%) HR employees are having difficulty meeting their average monthly mortgage repayment of £1,259.56. This is more than double the percentage of those working in the manufacturing and utilities (36.04%) and education (35.87%) sectors. 

Across all industries, 40.71% struggled with their repayments, 35.29% less than HR employees. 

Three in five (59.5%) homeowners in the IT & telecoms industry have problems meeting the average mortgage repayments of £1,110.98. This is the third most expensive, only behind payments for employees in HR (£1,259.96) and sales, media and marketing (£1,172.96). 

Rounding up the top three sectors is sales, media and marketing. Over half (55.77%) of employees in the sector reported difficulty with their monthly repayments, averaging £1,172.96. This is 38% more than the legal sector repays (£851.63). However, sales, media and marketing employees have struggled only 1.22% more than those working in the legal industry (54.55%), but earn 22% less per month. 

Claire Flynn, mortgage expert at Uswitch.com, provides guidance on keeping up with your mortgage payments during the cost-of-living crisis:

“With the cost-of-living crisis affecting all industries, many UK homeowners face more strain than ever to meet those monthly mortgage repayments. There’s no single best way to reduce the burden of payments, so consider which course of action is right for you. 

• • “Speak to your lender: if you’re concerned, you should speak to your lender as soon as possible. They may be able to adjust your mortgage payments so they’re more manageable, whether that’s by extending your mortgage term or switching you to an interest-only deal until you get back on your feet. Remember – your lender will want to help you meet your mortgage payments, so don’t be afraid to reach out.
  • “Remortgage: If the option is available to you, remortgaging can be a good idea. If you’re currently on a variable-rate, remortgaging could allow you to switch to a fixed deal so you’ll have peace of mind that your repayments will remain the same for a period of time. By remortgaging, you may also be able to extend your mortgage term to bring monthly payments down, although this will mean you pay more interest overall. If you’re thinking of remortgaging before the end of your current deal, you should also be mindful of early repayment charges as these can amount to thousands of pounds. 
  • “Use a mortgage broker: mortgage brokers are experts in the market and will be well equipped to help you find a new deal that better suits your circumstances.” 

Read more about interest rates and other mortgage statistics at the Uswitch 2022 mortgage statistics page.

Kindly shared by Uswitch

Main article photo courtesy of Pixabay