Nine out of 10 arts and culture employees are unable to change their mortgage deal, according to the latest research by Uswitch.
In the face of rising mortgage rates, Uswitch investigated which industry’s employees are most likely to be unable to switch mortgage deals, despite being up to date with payments.
The research found that those employed in the arts and culture sectors are most likely to be unable to switch mortgage deals, with 90.48% falling into this category.
Furthermore, 73.68% of these can’t switch as their current deal hasn’t ended, which could mean rising repayments for the 23.81% of employees not on a fixed-rate deal.
Claire Flynn, mortgage expert at Uswitch.com, said: “If you’re nearing the end of your current mortgage deal, it might be worth looking at remortgaging options.
“If you’re on a variable-rate at the moment, switching to a fixed-rate deal means your repayments will remain the same for the duration of the deal and won’t be affected by interest rate changes.”
Among employees in arts & culture unable to switch, 21.05% cited rising interest rates as the biggest obstacle, and 15.97% reported it was due to a change in income.
Travel & transport employees are second, with 8 in 10 (84.13%) unable to switch mortgage deals.
More than three quarters (77.36%) are locked into their current deal, and 22.22% may see increases in monthly repayments, due to being on a variable-rate mortgage.
However, unlike the arts & culture industry, the inability to switch mortgage deals is more likely to be due to a change in income (7.55%) than rising interest rates (5.66%).
For most survey respondents, rising interest rates were cited as the largest obstacle for those looking to remortgage
For 22.34% of those earning less than £15,000, interest rates are the main issue preventing them from remortgaging their home.
Meanwhile, just 7.18% of those earning more than £55,000 have interest rates as the reason they are unable to remortgage.
Additionally, change to income was also found to be a large factor in preventing homeowners from remortgaging
On average, 14.07% of homeowners earning less than £15,000 are more likely to be affected by a change in income, while only 5.84% of those earning more than £55,000 share this issue.
Flynn added: “It’s important to bear in mind how remortgaging could affect your current plan.
“Leaving your plan early could result in early repayment charges (ERCs) that cost more than the potential savings from switching.
“Mortgage deals in the UK are often valid for six months, so if you’re within six months of your deal ending, you can lock in a new rate now and switch when your current deal comes to an end, avoiding an ERC.
“If you’re in this position, speak to a mortgage broker as soon as you can to find out what options are available to you.”
