Almost half of mortgage holders cutting back spending

Nearly 50 per cent of mortgage holders have already started cutting back in anticipation of interest rate hikes, an exclusive poll by ITV News has revealed.

Of those surveyed, 28 per cent said it would have a negative impact on them.

But 27 per cent, such as those who have paid off their mortgages, welcomed the increase as it means they would make more on their savings.

ITV News Reporter Ben Chapman has this report:

Although almost half of homeowners say they are cutting back spending ahead of a possible interest rate rise, over a third of Britons say a rise would not affect them.

The number who say a change in rates would have "no impact" on their personal finances has grown steadily over the last year, from 27% at the end of 2013 to 36% in the latest ComRes poll for ITV News.

Read: Almost half of mortgage holders cutting back spending

Almost half of mortgage holders are cutting back on their spending because they fear a rise in interest rates will leave them with a bigger repayment bill.

A new ComRes survey for ITV News found that 49% were holding back ahead of a possible rates announcement from the Bank of England, while 35% of the total population were doing likewise.

At the same time, Britons seem evenly split on how a rate rise would affect their own finances, with 28% saying it would have a positive impact and 27% saying it would be bad news for them.

Just over one in six (17%) homeowners with a mortgage said the impact of a rate rise would be "very negative".

The governor of the Bank of England, Mark Carney, indicated in June that rates could rise "sooner than markets expect".

ComRes interviewed 2,021 British adults online between 1st and 3rd August 2014.

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