—
Mortgage rates have hit an all-time high since April 2009. As interest rates rise, lenders are upping their mortgage rates to unprecedented levels, leaving millions of UK families struggling to find an affordable mortgage.
As home loans get more and more expensive, analysis of Google search data shows that people in the UK are searching more and more for terms such as ‘mortgage help’. The term has soared in searches by 1,366% in the past week alone according to analysis by mortgage broker L&C Mortgages.
What Are People Searching For?
L&C Mortgages’ data reveals that the term ‘how to afford mortgage’ has shot up by 324% in the past five months. The term ‘remortgage’ has gone up by 106% in the past 30 days alone.
Another term to see a huge jump is ‘when will interest rates go down’, which saw a huge search increase of 487% in the last 12 months. Within the same time frame, the term ‘when will mortgage rates go down’ rose in search frequency by 268%.
Why Are People Looking For Mortgage Help?
“UK mortgage rates have been at a high since 2009, meaning many families cannot afford their mortgages any more,” explains Deedle Finance. Moneyfacts has said that the average two-year fixed residential mortgage has gone up to 6.66, which is the highest level recorded since the financial crash in 2008. This rise has put a huge pressure on UK homeowners.
The Bank of England recently released figures that show almost a million borrowers will be seeing an increase in their mortgage payments of up to £500 each month by 2026. For an employee making an average wage, that is the equivalent of losing almost a week’s wages every month.
The situation feels dire for the millions of families whose fixed-rate mortgages are set to expire in 2026. They will be forced to take out new mortgages at increased rates, which may be unaffordable to them. Failure to do so could result in repossession.
What Will Be Done About Rising Mortgages?
A spokesperson from L&C Mortgages has said about the recent analysis: “The past few weeks have seen the rising mortgage payments and high-interest rates make front page news, with these increases pressuring the finances of millions of borrowers in Britain, triggering a surge of uncertainty about where interest rates will go next”.
“However, the latest news has now caused a surge of online interest in those looking to get more information and help on mortgages, interest rates and rent, highlighting the massive impact of the cost-of-living crisis on the British public”.
More and more people are looking for mortgage holidays, which allow you to have a month or two off from payments without being charged fees or impacting your credit scores. The market for second mortgages has continued to grow as people seek to withdraw some equity from homes to help their cash flow. Other opportunities include downsizing or remortgaging under more favorable terms and drawing down cash at the same time.
What Can I Do About My Mortgage?
Consumer advisor Martin Lewis has recommended homeowners gather all the relevant information about their current mortgage deal. He said: “Find out the rate, the type, when your fix ends if it’s a fix. The term, how long your mortgage will last, and any early exit penalties for clearing it.
“Most importantly for everybody out there, you need to know you’ll move to the standard variable rate. You don’t want to be on an SVR,” warned Martin. “If you possibly can, you want to get off that, so you need to know when you’re going to be moved to that.”
—
