Research by The MarketPlace at Bradford & Bingley suggests there is widespread apathy amongst homeowners towards interest rate rises.
Over 80% of adults in the UK, are either not worried at all or only slightly worried about interest rates rising in the near future.
Interest rates rising this year won't encourage over half (58%) of homeowners to remortgage to a better deal. Fewer than one in 10 (8%) will definitely remortgage if rates rise by the end of the year and more than one fifth (22%) will want to see another rise before they even consider it.
The research also shows there needs to be a substantial rise in interest rates and monthly mortgage payments before the majority of homeowners will even start to think about a better mortgage deal:
Over half (54%) of adults in the UK say that there will need to be more than a 1% interest rate rise before they would consider moving their mortgage to a better deal.
Nearly two-thirds (62%) of homeowners would not be concerned about an increase in their mortgage repayments until they had increased by over £50 a month, with an apathetic third (35%) having no serious concerns until they saw a £100 or more increase.
Elliot Nathan, product development manager for The MarketPlace, says: “Our research shows the majority of homeowners are completely apathetic about an increase in interest rates and are waiting to see big increases in their monthly mortgage repayments before they will even consider reviewing their current mortgage.
While it is right that borrowers should not be overly concerned about potential rises in the base rate – as they are likely to be moderate – for nearly two thirds (62%) of borrowers to bury their heads in the sand until they see an increase of over £50 a month is alarming when they can remortgage and save this comparatively easily.”