A third of UK mortgage holders are 'fairly worried' about the impact of a base rate adjustment when the Monetary Policy Committee (MPC) meets this week, however the same amount admitted that they won't take any notice of the outcome at all.
The older generations appear more laid back about any change in base rate, perhaps because they have less left to pay on their current mortgage, whilst those aged between 25-34 years old are fretting about it.
However, only 14 per cent of borrowers have mortgage products that protect them from rate changes.
“There has been much speculation about the MPC’s next decision, but there are clearly some people who are relaxed given the nature of the products they have," said Cammy Amaira, director of sales, Intelligent Finance.
"Interestingly, it is the younger generation who are more up to speed - perhaps they would benefit by having a word with their parents!
Offset mortgages have been cited as giving borrowers peace of mind in times of turbulent interest rates, as well as helping to mitigate against the impact of a rate adjustment on a borrower's monthly finances.
According to Intelligent Finance, a typical couple taking out a 25-year repayment home purchase offset tracker could save £70,910.49 and shave five years and four months off their mortgage term.
This is based on the couple borrowing £150,832 against a property worth £194,895 with £18,566 in savings and £3,000 monthly salary paid into a current account.
