Mortgage holders interviewed by Ipsos MORI on behalf of the Halifax building society found that while 41% say they are concerned there are wide regional variations.
Some 61% of home owners in the North East are not concerned, along with 60% in Wales and 58% in Scotland. But 53% of home owners in the South East are concerned, followed by 49% in the South West.
The research also found that 30% of mortgage holders in the North West would find it difficult to afford monthly repayments if the amount increased by up to £50, followed by 20% in Scotland and 21% in the North of England.
In the West Midlands 45% of home owners would find it difficult to afford repayments if they increased by up to £100 while 60% would find it difficult to afford payments if they increased by up to £150. While in the South West 46% would struggle if their monthly mortgage payment was £100 higher.
Other groups who are more likely than others to say they are concerned about interest rate rises impacting their mortgage payments are women at 45% along with 50% of those aged 35 to 44 and 48% of families with children. While 57% of those with variable rate mortgages compared to 43% of those with a fixed rate mortgage would be concerned.
Nationally 13% are concerned that they would find it difficult to afford their monthly mortgage repayments if the amount was up to £50 higher. A third, 33%, say they would struggle if the amount was up to £100 higher, and this figure rises to 42% for those on variable rate mortgages.
If their mortgage payment was £100 higher, a third of mortgage holders felt that they would have to reduce spending on everyday essential items such as food, energy, clothing and insurance. This rises to 39% for Londoners and those living in Wales.
‘Speculation of a potential rate rise has been high up on the news agenda for some time now so it is perhaps surprising that the majority of home owners are not concerned about this,’ said Craig McKinlay, mortgages director at the Halifax.
‘However, with base rate historically low, and the Bank of England reinforcing its position that there will not be a rush of successive rate rises, it is understandable as to why the perceived impact of future rises is being dampened and homeowner sentiment is reflecting this,’ he explained.
‘With the base rate remaining at 0.5% for over five years, a significant number of homeowners have not yet experienced the effects of a rate rise. While responsible mortgage lenders take in account potential rate increases as part of the affordability checks in the mortgage application process, the way in which people manage their remaining disposable income will be a key factor in how well they can adjust to any changes in rates,’ he added.
