UK mortgage customers are turning to fixed rates and lump-sum payments as interest rates rise, according to new research by Butterfield Mortgages.

The survey also reveals that 20% of borrowers have delayed or abandoned their plans to buy a new home in the past year due to higher rates, while 13% have downsized or moved to a cheaper property to lower their mortgage repayments.

Butterfield commissioned an independent survey among 2,000 UK adults, 667 of which have a mortgage.

It found that 27% of mortgage customers in the UK have made one or more early lump-sum repayments over the past 12 months to reduce the size of their mortgages.

This figure rises to 49% among borrowers on tracker or standard variable-rate mortgages. In addition, a quarter (25%) of those with a mortgage have re-mortgaged since June 2022 to secure a fixed rate.

Since December 2021, the Bank of England has raised the base rate from 0.1% to 5.0%, and rates are expected to peak at 5.75% later this year.

While some have shelved homebuying plans, 22% of existing mortgage customers have actually accelerated their home-buying plans to get ahead of any further interest rate.

When asked about their outlook on interest rates, only 44% are confident that they are nearing their peak and borrowing costs could ease in the coming 12 months.

Butterfield’ research also reveals that the majority (67%) of borrowers believe the mortgage market is still feeling the adverse effects of last September’s mini-budget under Liz Truss.

Butterfield Mortgages CEO Alpa Bhakta says there’s no denying that borrowers have had to navigate a particularly complex mortgage landscape over the past 12 months.

“Our research shines a light on how mortgage customers are responding – and although often overlooked, the data highlights that many people are taking proactive measures including making early repayments or bringing forward home-buying plans to stay ahead of further rate rises”.