Mortgage rises are set to make acquiring a mortgage impossible for many people in the UK because of a need to earn an extra 15K. We examine the changes afoot and what the possible solutions are.

UK National Media Reports on Mortgage Rises

Recent reports in the UK media revealed that house buyers need a 37% pay rise to get a mortgage, equating to a  £15,000 salary increase outside of London. In the London area that is equivalent to an extra £29,000. Rising interest rates could push high numbers of people off the property ladder and remortgaging may no longer be affordable according to property experts. In turn this could trigger a downturn in UK property prices with some house owners being forced into selling. The future seems gloomy for house buyers in the UK at first glance. 

What is the solution to increasing mortgage rates?

While getting a £15K salary raise is beyond most people’s means, running a side business is a more achievable way to cope with mortgage rate increases. Since the first lockdown in early 2020, the number of online businesses doing ecommerce has vastly increased across the world. Increasing numbers of people became digital business owners with the huge surge in online shopping. 

“Online shopping provided a practical alternative as retail locations closed and people stayed in to avoid the virus. In fact, global e-commerce rose from 15% of total retail sales in 2019 to 21% in 2021. It now sits at an estimated 22% of sales.”

Source: Morgan Stanley, June 14, 2022

Which is the best online business to start?

Digital Marketing and Domestic cleaning businesses are both very popular choices in modern times, as well as ecommerce and VA start ups. Check out the most popular businesses offered by our sister organisation Love My Businesses:

• eCommerce
• digital marketing 
• networking businesses
• Online cleaning businesses 
• a VA agency

Scale your existing business

If you are already in business, one effective way to grow your business is to invest in a Growth Accelerator. This is basically a set of digital tools and services that are equivalent to an in house marketing agency. Leveraging the power of digital you will be able to significantly increase your sales revenue and lead generation. With the extra income earned, you will be able to put more towards a mortgage on a property. 

Overcoming the mortgage salary rise 

London based entrepreneur and Co-Founding Director of Your Business Group, Jey Jeyanathan, has advice for budding entrepreneurs looking to overcome the mortgage rate crisis:

"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."

Are you ready to innovate and overcome the mortgage spikes? Get in touch today for free advice. 

About The Author

Jamieson Lee Hill, Head of Content and Copywriting

Hill designed the Knowledge Base for our sister organisation Love My Businesses.com and is a feature articles writer. With a Postgraduate Diploma in Business Management (DMS) and Certified in 11 areas by DigitalMarketer, USA, Hill is well versed in Business and Marketing. As a lecturer, Hill taught English, Business English, and Enterprise for Business in the UK and managed the curriculum in FE colleges and schools. 

In addition, he was a Curriculum Design Consultant for large training organisations such as Avanta and Ixion College and well known UK brands from 2012 to 2018. Author of two pedagogical books (E Training books for Ixion College and RET International), editor for 3 novels (‘The Adventures of Tom Sharpe’ by Peter Drinkwater) and one autobiography ‘Life’s A Game’ by Mev Dinc, founding father of the Turkish video games industry, Hill is a diligent writer and editor.