According to Lloyds TSB research, consumers are worried that the base rate will rise from its current 4.5 per cent in the near future, pushing up the amount many will have to repay on loans.
“It is not what rates do – but the expectation of what they do,” said John Butler, chief UK economist at HSBC, commenting on concerns of a rise in the interest rates.
“[Expectations] could cause fear among households.”
The proportion of Britons anticipating a rise in interest rates rose six per cent to 65 per cent in June, the survey’s highest level for two years, while only five per cent of people believe they will be cut.
This means that even more people are becoming concerned about their debts and any loans they have which are linked to the Bank of England’s interest rates.
It also found that many people were confident in their job security yet still concerned over rates, showing that repayment worries affect most people unless action is taken to tackle debt.