Those employed in arts and culture are most likely to be prevented from switching mortgage deals, with a whopping 90.48% of those in the industry falling into this category, according to the latest findings by Uswitch.com.
As part of its mortgage statistics report, Uswitch.com investigated which industry’s employees are most likely to be unable to switch mortgage deals, despite being up to date with payments.
While it was arts and culture employees who were found to struggle the most, just 38.10% of those working in this industry struggled to meet their monthly mortgage repayments in the past year.
Claire Flynn, mortgage expert at Uswitch.com, said: “Taking out a new mortgage can be a useful way to reduce your costs, or to prevent your deal from being affected by rising interest rates.
“Switching to a fixed-rate deal means your repayments won’t be affected by these rates – meaning now may be the optimal time for many households to remortgage.
“Changing to a new mortgage deal may also be the best way to consolidate your debt, or to get some extra cash for expensive purchases, such as home improvements.
She advised: “However, it’s important to bear in mind how remortgaging could affect your current plan.
“Leaving your plan early could result in repayment charges that cost more than the potential savings from switching.
“It’s also possible that you’re benefitting from a much cheaper rate than those currently available, so changing deals could leave you paying more in the long term.”
Among employees in arts and 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 – both potential consequences of the cost-of-living crisis.
Travel and transport employees come second for struggling to switch, with 84.13% up to date on their mortgage payments but unable to change deals.
However, unlike the arts and culture industry, this is more likely to be due to a change in income (7.55%) than rising interest rates (5.66%).
Those working in human resources are only slightly less likely to be up to date with their mortgage payments but unable to switch deals, with 84.00% of HR employees in this position.
Almost 10% more than the total average (74.94%), 23.81% of HR employees are unable to switch due to a change in income.
This is only slightly more than those who cited rising interest rates as their biggest obstacle in getting a new deal, at 19.05%.
Rising interest rates are also the largest obstacle for those with a lower income 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, suggesting inflation is having a more serious effect on lower-income households.
Change in income is a large factor preventing homeowners from remortgaging.
HR employees will face this most often, with 23.81% being unable to change deals.
Homeowners working in arts and culture may also face these issues, with wages preventing 15.79% of them 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.
A low credit score is also more likely to affect low-income homeowners.
On average, 10.37% of those earning less than £15,000 are being prevented from remortgaging, compared to 4.55% of those earning more than £55,000.
In terms of industry, legal employees are most affected, with 17.24% unable to remortgage due to a low credit score.
For more details, visit: https://www.uswitch.com/mortgages/remortgaging
