Significant numbers of mortgage borrowers are consolidating their debts in expectation of a possible rise in interest rates according to the the Halifax.
The lenders figures have found that just under 50 per cent of all unsecured borrowing is taken out as a consolidation loan.
The findings indicate that borrowers have heeded Eddie George’s warning that rates may have rise to choke off spending, as figures released last month by the Bank of England found that consumers spent the first few months of the year paying off £295m more on credit cards than they spent.
Glenn Hutchinson, head of consumer credit at the Halifax, said: "With economists forecasting a rise in interest rates by the end of the year consumers are taking a more responsible attitude to their debt and spending.
"We have seen more people taking advantage of the low interest rates by consolidating and fixing their borrowings, at bargain rates, in anticipation that things could be about to get tougher."
