Mortgage holders anticipated last week's interest rate hike, according to a new consumer survey by Lloyds TSB Corporate Markets.
The financial services provider's consumer barometer for April found that mortgage holders prepared themselves for the monetary policy committee's decision to raise interest rates.
And they are bracing themselves for yet more base rate hikes, with 80 per cent thinking that by this time next year the UK's interest rate will be higher than its current level.
In comparison, only four per cent predict lower interest rates for the first half of 2008.
Commenting on the survey, Lloyds TSB Corporate Markets chief economist Trevor Williams said "pretty much everyone" expected last week's interest rate hike.
"For consumers, forewarned is forearmed and the impact is likely to be much less than if the rise came out of the blue," he said.
The consumer barometer suggested that mortgage holders were "unlikely to be caught off guard" by increases in mortgage repayments.
The Building Societies Association warned mortgage holders not to panic because of the interest rate hike.
However, those with variable rate mortgages would be hit with higher repayments, director-general Adrian Cole said. If they find it difficult to repay their mortgages as a result of the rise, they should seek help, he added.
"Not paying your mortgage can put your home at risk," he warned, adding that mortgage lenders want to avoid this, so borrowers could expect a "sympathetic response".
Mortgage holders were ready for hike, says survey
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Mortgage holders were ready for hike, says survey
Wed, 16 May 2007
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