Borrowers are still largely unconcerned about the latest interest rate rise nor about a further rise, according to research by Bradford & Bingley .
At the same time, however, B&B suggests they are perhaps too complacent with many still on standard variable interest rates.
Over half of borrowers questioned expect the base rate to rise more than once over the next few months with 65% are unconcerned about a half point rise and 49% unconcerned about a 1% rise.
At least 75% of borrowers also say they do not consider their mortgage borrowings to be a heavy burden.
Bitner also encourages the 40% of borrowers on standard variable rates to look to fix their rate. He said borrowers with a £100,000 variable rate mortgage will have seen their monthly payments rise £70 a month in the last ten months but can cut that cost. A 1% saving from a typical SVR is worth £62 per month or £744 a year.
"While another increase will hardly be welcomed, our research reveals many borrowers were anticipating it and are not overly anxious about the resultant rise in their mortgage payment," says David Bitner, head of product operations for Bradford & Bingley.
"Another significant reason why the majority of borrowers aren’t unduly worried about today’s rate rise is the good shape the economy is in. Unemployment is low and homeowners are still enjoying comparatively low mortgage rates.
"While these important drivers remain healthy and there are no indications to suggest they shouldn’t continue to do so – many borrowers will continue to have a balanced outlook. We still expect any further Base Rate rises to be moderate, so borrowers are right not to be overly concerned," adds Bitner.IFAonline
Three years at the Treasury
Address key mistakes
Letter from the frontline
Breaching SEC rules
In Leeds since 1969