Almost a third of mortgage holders (31%) are still worried about interest rates rising, despite the fact that they are actually falling.
That’s according to a survey from online income and expenditure budgeting tool IE Hub.
The Bank of England cut its base rate in August, and mortgage rates have been falling since a little before then. But borrowers are still worried.
A fifth (20%) of people who own a property already say their mortgage is much more than it used to be.
The same proportion (21%) say their fixed rate mortgage ends in the next 12 months and a quarter plan to switch deals in an attempt to reduce costs.
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Struggling to pay
Nearly one in 10 (9%) of people said they are already struggling to pay their mortgage and 6% have extended their mortgage term due to previous hikes in interest rates.
Dylan Jones, CEO of IE Hub, said: “A mortgage is a major expenditure for many people, so it’s not surprising that for many that are either coming off a fixed deal or who have had an endowment mortgage, this is a worrying time.
“If you do find yourself struggling to pay your mortgage, get in touch with your provider in the first instance and discuss with them a payment plan that you can afford.
“Don’t suffer and worry in silence, reach out – mortgage lenders are there to help you and have a duty of care to do so too.”
This article was first published on Mortgage Solutions‘ sister site, Your Mortgage. Read: A third of borrowers concerned about mortgage costs
