The Bank of England’s decision to hike interest rates from 5% to 5.25% – the 14th consecutive increase – has sent shockwaves through the housing market. As a result, Google searches for ‘Mortgage help’ in the United Kingdom have soared by 1,366% in the past week, according to an analysis by mortgage broker L&C Mortgages.
This surge in searches reveals a growing sense of panic among British homeowners and renters. In the wake of continuous announcements from the Bank of England regarding the increased base rate, other terms like ‘Mortgage support’ have also seen a 213% increase over the past month.
The data shows that people are not only concerned about immediate support but also about the future of the mortgage market. Queries like ‘When will interest rates go down’ have seen a 487% search increase, and ‘When will mortgage rates go down’ have spiked by 268% over the past year.
The average 2-year fixed residential mortgage has risen to 6.66%, the highest level since the 2008 financial crisis. Figures from the Bank of England suggest that nearly a million borrowers could face an increase in mortgage payments of up to £500 a month by 2026, equivalent to almost a week’s worth of pay for the average worker. This grim forecast has likely contributed to the 186% increase in searches for ‘How to pay mortgage’ in the past month.
The escalating mortgage costs are also affecting renters. As buy-to-let landlords pass on higher mortgage repayments, the British public has noticed rising rent costs, with Google searches for ‘Rent increase’ surging by 235% over the past five years.
A spokesperson from L&C Mortgages reflected on the urgent situation, said: “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.”
