According to research from broker firm Butterfield Mortgages, which surveyed around 2,000 UK adults, this rises to 48 per cent of young mortgage customers aged 18 to 34.
The Bank of England has increased the base rate six times, with it now set at 1.75 per cent, up from 0.1 per cent nine months ago.
The market largely expects that Monetary Policy Committee to raise rates by 0.75 per cent to 2.5 per cent this week. The decision was due to take place last week but was delayed due to Queen Elizabeth’s passing.
The research showed that 44 per cent of UK mortgage customers were more worried about interest rates than inflation, and 42 per cent were thinking of switching to a different mortgage provider for a longer-term fixed rate mortgage.
More than half of mortgage customers said they felt “locked in” by their current mortgage provider and 27 per cent were actively looking for a new mortgage deal.
Under half of those surveyed, 45 per cent, thought their lender had been “proactive” in providing guidance or communication about the ramifications of rising interest rates.
Alpa Bhakta, CEO of Butterfield Mortgages, said: “Borrowers are facing sharp shifts in the economic landscape. Our research has shown the extent to which six consecutive interest rate hikes by the Bank of England have impacted mortgage repayments and people’s wider financial concerns.”
She added: “As lenders, we must do everything we can to help mortgage customers navigate the best possible financial path through these mounting challenges. This includes taking proactive steps towards anticipating borrowers’ evolving needs and offering greater flexibility with long-term and fixed rates, which may provide a sense of security over the potentially uncertain times ahead.”
