Quarter of borrowers still keen to move despite inter...

A quarter of borrowers would be unable to afford their mortgage repayments if interest rates hit 5% but the threat of rises isn’t deterring all home movers, a survey suggests.

The latest Anthony Ward Thomas Attitudes to Moving survey has identified how successive interest rate rises combined with soaring bills are causing concern among borrowers.

The survey asked 2,000 members of the public a range of questions about their own home moves as well as their opinions on topical issues impacting the housing market such as interest rates.

A quarter of borrowers said it was “somewhat unlikely” or “very unlikely” that they will be able to afford their payments were interest rates to hit 5%.

A further 13% said they didn’t know whether they would be able to pay their mortgage in this scenario.

However, 24% of respondents said they were still planning to move within the next year despite the prospect of rising borrowing costs.

Respondents remained bullish about the prospects for the market, with 67% confident that property prices would either remain the same or rise over the next year, according to the survey.

Only 15% thought prices would fall, while 18% didn’t know.

Given the interest rate uncertainty, the prospect of 50-year mortgages received the backing of 36.5% if it improved their affordability.

It comes as the Bank of England is widely expected to raise interest rates again on Thursday for the seventh time since December.

Anthony Ward Thomas, founder of Anthony Ward Thomas Removals, said: “The soaring cost of living is a growing concern. Interest rates are rising as the Bank tries to control runaway inflation and borrowers are clearly worried as to just how high they will have to go.

“Throw in higher energy, fuel and food bills on top of greater mortgage costs and it is no surprise that people are increasingly uneasy.”