As doomsday banking experts continue to raise concern that if mortgage rates jump the amount of foreclosures will increase as people will be unable to afford their monthly payments, a new survey reveals that many people are actually ready for this to happen. In fact, the study shows that most homeowners are aware of the threat of increased mortgage rates and are prepared to meet the new demands should they occur.

The results were compiled as a result of an industry survey that was carried out at the end of 2011. The survey also revealed that during 2011, mortgage repayments were at the most affordable that they have been for a decade.  This may be due to the fact that many people remortgaged their homes over the course of 2011 in order to take advantage of the best mortgage rates.

These rates were offered during the year the first nine months before the Eurozone crisis hit during the last quarter of the year. The poll also showed that 70% of borrowers that were questioned already have a plan in place that will help them afford the increase in their mortgage.

Another 80% of those included in the poll stated that if the interest rate were to change, thus increasing their mortgage rates, they have enough room in their budget that they could still afford their mortgage. While the survey did not state whether or not the changes would restrict their budget, most of those questioned did express that they would be able to continue to make monthly payments without a large reason for concern.

Despite this fact, the survey also showed that despite continual warnings from experts that the rates could go up, most borrowers do not really believe that it will happen in 2012. There are experts who also share this view as some banking industry analysts predict that the Bank of England will not actually change the base rate in the UK until 2014.

This alone would be astounding given the fact that it has sat at .5% for 34 months already.  However, if the euro fails, or the Eurozone debt crisis fails to find a resolution over the next couple of months, then the economic climate in the UK could be quickly affected changing the current predictions of the housing market.