A moneysupermarket.com poll of site users reveals 51 per cent of homeowners whose mortgage deals end soon haven't started looking for a new one.
The poll revealed one in six have found a new deal but that monthly payments will be so much higher they fear they will struggle with repayments. A further 18 per cent have struggled to find a new deal they can afford or will be eligible for.
Louise Cuming, head of mortgages at price comparison site moneysupermarket.com, said: "Many homeowners will be plunged into a borrowing underclass in July when their fixed rate deal comes to an end. Banks are cherry picking customers, leaving many people unable to find affordable deals to service mortgages taken out in better times, when they were plentiful and easy to get hold of.
"However, burying your head in the sand isn't going to help. Anyone whose fixed rate deal is coming to an end should start planning at least three months before the product is due to finish.”
