New ICM research commissioned by Intelligent Finance has found that 41 per cent of borrowers feel ‘extremely worried’ in anticipation of the Bank of England’s decision.
The Bank of England has raised interest rates five times in the last 12 months, and commentators suggest further increases are likely in the coming months. Yet only a quarter of people surveyed said they held products that are protected from rate changes.
Managing director Mark Parker says: “With interest rates on the rise and purse strings tightening, it’s important to make every penny work as hard as possible. Offset mortgages give peace of mind, negating the effects of a rate hike and giving the flexibility to lower monthly payments. This is good news whether you’re a worrier or not!”
The research also found that four in ten 18-24 year olds get worried about the impact of a rate change and a further 10 per cent get ‘extremely worried’ at the prospect of a rate rise, but only 7 per cent have products to protect themselves from rate changes.
Fewer than a quarter of women claimed to take no notice of upcoming rate-changes, compared to a more relaxed 38 per cent of men, and twice as many women than men claimed to get ‘extremely worried’ (14 per cent). Interestingly, when it comes to protecting themselves from rate rises, almost a third of women have been precautious in their choice of products, compared with only a fifth of men.