Homeowners have been urged to take a long-term approach to their finances in order to cope with the impact of interest rate rises on their mortgage.

Research from Lloyds TSB Mortgages revealed that 71 per cent of those whose mortgage deals expire before the end of this year expect that they will be faced with higher payments, with many considering tightening their belt to free up some cash.

The survey found that ten per cent of homeowners would move in with a partner to ease the financial strain or rent out a room in their home to lodger to help them cope.

Alison Burns, director of network mortgage sales at Lloyds TSB, said: "It''s a good idea for people with mortgages to take a longer term view of their financial situation to ensure their mortgage is suited to their specific needs and changing circumstances.

"Some consumers may prefer a stepped rate deal that allows them to ease into the new higher interest rate environment. Other homeowners might opt for a tracker product, which will enable them to benefit from any potential drops in interest rates," she suggested.

Last month, the Council of Mortgage Lenders predicted that re-mortgaging would remain buoyant but that borrowers may find themselves with higher monthly repayments.