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ABC News
ABC News
Business
business reporter Michael Janda

Banks to be stuck with 'mortgage prisoners' as those who can refinance their home loan search for a better interest rate

Rising interest rates and the expiry of cheap fixed loans are expected to cause mortgage arrears to "rise sharply". (ABC News: Alistair Kroie/John Gunn)

Around half of fixed rate borrowers whose low-rate home loans are expiring over the next two years are planning to leave their current lender, but it's those customers who can't that might prove a bigger problem for the banks, new research finds.

The research, a survey of 1,641 mortgage brokers conducted for investment bank Barrenjoey over the past eight months, asked brokers three key questions.

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