According to The Mortgage Lender (TML), which gathered views from 2,097 adults, 500 of whom have a mortgage, in November last year borrowers only predicted a £176.84 increase in their monthly mortgage payment when they renewed.
The survey continued 80 per cent of homeowners have said that they are concerned about rising mortgage rates.
Around 37 per cent said that they were extremely concerned and 43 per cent were somewhat concerned about growing mortgage rates.
Young people are especially concerned about rising mortgage rates at 88 per cent, the highest of all age groups.
Approximately one in 10 said that they were due to renew in the next six months, and 14 per cent said they would renew in the next six months to a year.
Of those homeowners who are expecting an increase in mortgage payments, 28 per cent are speaking to a lender and 25 per cent are talking to a broker.
Around 18 per cent are looking for a higher paying job, 13 per cent are taking out a mortgage with a longer term, nine per cent are borrowing money from their parents, seven per cent are returning to work and five per cent are returning to renting.
Only four per cent are considering selling their buy-to-let property.
Nearly 19 per cent said that they would not do anything to account for higher mortgage costs and a similar number are drawing on long-term savings.
Steve Griffiths, chief commercial officer at TML, said: “With rates rising steadily over the last year, homeowners have been living with this new reality for a while now. However, as many mortgages start coming up for renewal, the affordability challenges within the market are starting to hit more mortgage borrowers.
“Indeed, when we last conducted this research homeowners expected their monthly payment to rise by £176.84, however this has now increased substantially, posing more of a challenge for borrowers who are already being hit with rising costs elsewhere.”
“It is encouraging that a significant number have taken proactive steps to address these challenges head-on. Speaking to a broker or lender can help demystify the challenge, allow you to understand all your options and guide you to the route that will work best for you and your circumstances.”
