According to research from Butterfield Mortgages, which surveyed 2,000 people, 667 of whom had a mortgage, the number paying a lump sum rises to 49 per cent of borrowers on tracker or standard variable rate mortgages opting for lump sum payments.
A quarter of those who have remortgaged since June last year have selected a fixed rate, which the firm attributed to the higher interest rate environment making mortgage rates more volatile.
The research added that 20 per cent of borrowers have delayed or abandoned their plans to buy a new home in the past year due to higher rates and 13 per cent have downsized or moved to a cheaper property to cut their mortgage repayments.
On the flip side, around 22 per cent of existing mortgage customers have accelerated their homebuying plan to get ahead of further interest rate rises.
Only 44 per cent are confident that mortgage rates are nearing their peak and borrowing costs could ease in the coming months.
Alpa Bhakta, CEO of Butterfield Mortgages, said: “There’s no denying that borrowers have had to navigate a particularly complex mortgage landscape over the past 12 months.
“Our research shines a light on how mortgage customers are responding – and although often overlooked, the data highlights that many people are taking proactive measures including making early repayments or bringing forward home-buying plans to stay ahead of further rate rises.”
He added: “Against the backdrop of a challenging economic climate, being proactive, staying informed and seeking advice is more important than ever, allowing mortgage customers to make sound financial decisions.
“For lenders and brokers, therefore, clear communication with borrowers about how their rates or products might be impacted by further hikes in the coming months will be vital to helping them navigate the high interest rate environment with confidence.”
