Up to 43% of borrowers also said they were worried about the impact of further interest rate rises.

Closely linked to mortgage rates is the rate of inflation, which rose to 10.1% last month, up from 9.4% in June.

However, there is little sign there will be a let up in the coming months. According to the latest forecast by Goldman Sachs, inflation could hit 22% next year, well beyond the Bank of England’s prediction earlier this month that it would top 13% by the autumn.

Regarding mortgage types, Garrett said the recent BoE’s interest rate increase to 1.75% would have the greatest impact on those households with a variable or tracker mortgage rate (about 21% of the total) rather than those with fix rate deals.

“Our data shows that borrowers are clearly concerned about interest rate rises, particularly with the cost of almost every other item of household expenditure increasing at the same time,” she said.

“Households with fixed rate deals will be protected from rising interest rates for some time, but those whose deals are ending soon are in for a shock. With no clear end for the cost-of-living crisis, everyone is worried.”

The survey also found that 30% of borrowers would value information from their lender on different options available to them and that 28% would value information on how rate rises would impact them, highlighting the need for mortgage professionals “to be on the front foot with their communication to customers”, the report added.

Garrett said education was crucial, particularly for those borrowers who lacked sufficient experience in the housing market.

“They want this information to make more informed decisions. And it also highlights the opportunities for lenders to be able to offer this to their customers,” she said.

Read the original article published on Mortgage Introducer.