Residents of the UK believe interest rates will increase further, Lloyds TSB has found.
In fact 70 per cent of people think the cost of borrowing will go up, Lloyd's UK Consumer Barometer found.
15 per cent of respondents think rates will stay the same and 11 per cent thought rates would fall.
Lloyds TSB Scotland's Douglas Reid said: "There seems to be a strong view among consumers that interest rates are still on their way up, which is at odds with the market view.
"This suggests that if the interest rate environment turns out to be more benign, inflation and employment expectations are likely to rebound.
"It could spark a burst of activity in the housing market and faster economic growth, as consumers increasingly realise that interest rates may have peaked at a low level."To switch your mortgage to a fixed deal and avoid interest rate uncertainty, click here.
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