Overcoming the New Salary Rise Requirements for Mortgages

By Jamieson Lee Hill, Head of Copywriting and Content

In this article we examine how the mortgage rises in the UK will make it impossible for many people to apply for a mortgage because of the need to earn 15k more. We explore a solution to this problem which could be the ideal way around this challenging development.

Recent reports in the UK National media show that house buyers will need to attain a 37% pay rise to be granted a mortgage. This is equivalent to an increase of £15,000 in salaries outside of London or as much as an extra £29,000 in London. 

The increase in interest rates is going to force large numbers of home buyers off the property ladder. Property experts are also forecasting that the practice of remortgaging will no longer be affordable. This is likely to lead to decline in house prices in the UK and some property owners being forced to sell with no other option available. 

With the Bank of England forecasting a recession and the possibility of interest rates rising further, people looking to buy a house in the UK with a mortgage are facing an uphill battle. 

What is the solution to rising salary levels for a UK mortgage?

Achieving a salary raise of £15,000 is not an attainable target for the majority of people. A more achievable solution is to run an online side business to bring in the extra income to meet mortgage rises. 

The increase in the number of people running online businesses has been prominent since the start of 2020. People were forced to shop online during the pandemic and lockdowns and as a result online business saw massive growth.

Which is the right online business to choose?

If you have an incredibly busy job with little time or energy left over, a business which is fully automated is a pragmatic solution. A fully automated  business is where you invest your money and then an online team runs everything for you. You just bank the passive income that you earn once you have invested.

ECommerce, networking businesses and other ideas

For people with more time and who want to be more hands on, other notable choices are eCommerce, digital marketing and networking businesses. Also, online cleaning businesses or running an agency of VAs (virtual assistants) are popular choices.

Boosting an existing business

Another approach to increasing revenue and income for a mortgage would be to expand an existing business which you own. The Growth Accelerator is a virtual package of marketing tools and processes that help businesses scale and increase their profits.

Advice on overcoming the mortgage salary rise 

London based entrepreneur and MD of LMB, Jey Jeyanathan's advice for people concerned about the new mortgage rates is to consider these factors,

"With recession looming and businesses cutting back on staff, promotions and increases in salary rates are even harder to obtain. With an online side business you have the opportunity to bring in a second income and for fully automated business models, it is a passive income.

In times of recession and economic downturn, entrepreneurs innovate their way out of a crisis. Running your own side business is a sensible opportunity to increase your overall income to obtain a mortgage."