4.8m would struggle to find £200 extra for mortgage each month

If rising interest rates increased the average mortgage repayment by £200, 4.8m people, or 66% of all mortgage holders would struggle to pay.

Research released by financial markets insurance specialist MarketGuard revealed 2.7m variable or tracker rate mortgage holders would struggle to meet their mortgage repayments with an increase of just £100 a month, or an interest rate rise of just 1% for a typical interest-only mortgage.

Two-thirds of borrowers admit they are worried about the prospect of an interest rate rise in 2011/2012, according to the survey.However, although 60% of borrowers are keen to switch to a fixed rate for peace of mind, both the CML and FSA have said many customers are finding it difficult to switch because they are on a self cert, high LTV, credit impaired, or interest only mortgage.

Chris Taylor, CEO of MarketGuard, said: "This research reveals just how vulnerable the British public is right now to a rise in interest rates. It is clear that we face a major problem if rates start to move dramatically upwards in response to inflationary pressure".Fixed rate deals are popular because but there are many mortgage holders in the UK who are unable to find a suitable fixed rate deal.