Just under half of those surveyed (48%) could not say with certainty what they paid for their mortgage while a quarter of respondents did not know rising interest rates would be bad for them. A small proportion (5%) thought a Base Rate rise would be good news for mortgage borrowers.

Julie-Ann Haines, customer director at the Principality, said: “We are expecting a rise in the Bank of England Base Rate in the next few months but this is likely to be a very small rise occurring most probably in the first quarter of 2015.

“In real terms, a 0.25% rise on the estimated average mortgage of £113,549 equates to around an extra £23.66 a month or less than £6 per week which should be manageable for the majority.”

The survey highlighted that basic knowledge of mortgage products among customers was strong. Of those surveyed, 95% were able to name the provider which held their product, 74% knew how much was owed on their mortgage and 76% were aware of the date at which the mortgage would be repaid.

But only one in three (36%)were able to state the current loan-to-value of their mortgage.

The factor most likely to attract a customer to a mortgage was the strength of the interest rate (61%). Advice from a financial adviser (8%), the financial safety of the lender (7%), and having an existing relationship with the provider (4%) were other factors likely to influence a customer’s decision.

One in five of those questioned stated that they do not change their mortgage.

The remortgage market is in the middle of a tug-of-war between lender appetite and an improving housing market and tighter regulations on the assessment of affordability. On one end of the rope, lenders are slashing rates to drive up interest in switching products and sounding the alarm over the upcoming rate rise. Meanwhile rising property prices give homeowners back their equity.

On the other end of the rope, the MMR rules have made it tougher to get a mortgage and timely for borrowers switching products.

Figures released by property services firm LMS showed a slowdown in both the number of remortgage approvals and the value of lending in August compared to July which chief executive Andy Knee said was due to the weight of regulation.

The British Bankers’ Association showed a similar picture highlighting a 19% drop in remortgage approvals in August year-on-year.

The Council of Mortgage Lenders is calling for a simplification of the switching process when a review of the impact of the MMR is carried out by the FCA later this year.