David Bitner, head of product operations at The MarketPlace at Bradford & Bingley, says borrowers should not be overly concerned about a rise in interest rates.
He says: “They are more than likely to be moderate, but to think that many borrowers will just ignore the rise is worrying.”
Bitner adds that what is really concerning is that many borrowers can do something about this rise to counter their likely increase in monthly payments - but that they seem not to care.
“With at least 35% of the nations borrowers paying a standard variable rate, remortgaging to a current market-leading deal could offset the impact of a 2% rise in rates.
“With no-one expecting rates to rise by this level, they will actually end up saving money each month, and who would argue with that?
“Many of us demand value for money from our everyday purchases, so why would we not demand the same for the largest financial commitment most of us will ever make? Paying over the odds for your mortgage is the same as telling Mr Sainsbury that your weekly food bill is too cheap and can he put 20% on his prices ? it just does not make sense.”