British borrowers “fearful of interest rate rises”

This apprehension among borrowers is reflected in the finding that the number of people across the country who opted for a five-year fixed-rate mortgage deal increased by a full 11 per cent last month.

And if the perception of fresh rate rises in the pipeline proves to be accurate, the pressure on the finances of those looking to find a debt solution will intensify.

“Borrowers are wary of two-year fixed-rate deals that will not safeguard them sufficiently against this anticipated long-term rise in rates,” remarked Steve Cox, operations director of SFS.

The cost of borrowing was raised in August and November of 2006, as well as in January this year, which has seen the financial pressures increase on the thousands of Brits struggling with debt management issues.