One in four mortgage holders fear they will be in financial trouble when interest rates start to rise, research has found.

Some 27% of those surveyed for the Building Societies Association (BSA) and charity the Money Advice Trust think they will be in difficulty when the base rate eventually moves off its historic 0.5% low.

One in 14 (7%) people said that they would be in serious financial trouble if mortgage rates and repayments changed as they expect over the next three years, while a further one in five (20%) said this would cause them slight financial problems.

Around 39% of those surveyed said they will be forced to cut spending on holidays and eating out to cope with rate rises, while one-fifth plan to reduce spending on essentials such as clothing and food.

Joanna Elson, chief executive of the Money Advice Trust, said: "After all these years, mortgage-payers are in for a big financial shock when interest rates begin to rise. For many, that shock will be too much to absorb - and there is a real risk that we will see a surge in unmanageable debt problems as a result.

"Our message to borrowers is clear - interest rates will rise and that day is coming soon, so now is the time to prepare. Draw up a budget, speak to your lender, and if you do find yourself struggling to repay, seek free debt advice as early as possible."

Around one million homeowners have never experienced an interest rate rise, having climbed on to their first rung of the property ladder while the base rate has been at its rock bottom level of 0.5%, according to industry estimates.

The number of people falling so badly behind with their mortgage payments that they are having their home repossessed is currently at its lowest levels since 2006, according to the most recent figures from the Council of Mortgage Lenders (CML).

But think-tank the Resolution Foundation recently warned that if the base rate moves in line with market expectations to approach 3% by 2018, this could result in around one in four households with a mortgage spending more than one-third of their income on their repayments.

More than 2,000 mortgage holders took part in the Money Advice Trust/BSA research.

Paul Broadhead, head of mortgage policy at the BSA, said: " Clearly some of the actions borrowers say they would take may not be within their control, for example working additional hours.

"Our advice to those concerned about interest rate rises is to start thinking about how they will manage the increased costs."