(Bloomberg) -- One in three UK homeowners due to remortgage in the next year are taking on extra work to shore up their finances, according to new research.
A survey of 2,000 workers by Indeed Flex, an online marketplace for temporary employment, also found 54% of mortgage holders are cutting back on non-essential spending, including vacations and takeaway meals.
The figures reveal the steps being taken as people coming to the end of cheap fixed-rate mortgage deals brace for a significant jump in their payments.
Around 800,000 fixed-rate loans are due to expire in the second half of the year, and a further 1.6 million in 2024, according to industry body UK Finance. With interest rates at a 15-year high, households face a £220 ($279.39) increase in their monthly bills on average when they refinance, on top of the spiraling cost of food and other basics.
“While those with mortgages expiring this year cannot escape repayment increases, a substantial number are actively seizing control of their finances and trying to get ahead of the increase in their outgoing,” said Novo Constare, chief operating officer and co-founder of Indeed Flex.
Thirty percent of homeowners approaching the end of mortgage deals are already taking on extra shifts or doing side hustles to bolster their savings, according to the report. Around 30% of them are age 25 to 34.
A shift to fixed-rate mortgages in recent years has delayed the impact of aggressive Bank of England efforts to curb inflation since late 2021. Higher interest rates are now starting to bite, however, with a key survey Wednesday suggesting private-sector firms are contracting.
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