A new survey by the financial research service Cannex has revealed a sharp increase in the number of home-owners choosing to lock in their mortgage rates.

Almost 28percent of property owners switched to a fixed rate last November, in efforts to protect themselves from financial stress. The survey revealed that change rate was twice the figure two years ago.

The number of home-owners who refinanced their loans also soared in November by more than 10percent, the biggest rise in six years.

Industry experts warned that fear can trap nervous buyers into paying hidden costs.

Michael Batinic from Mortgage Choice Miranda said people needed to weigh up the rates increase against their financial situation.

``It is always a good idea for borrowers to reassess their home loan situation when it changes or they are being stretched monetarily,'' Mr Batinic said.

However, he added that it was important to take into account not only loan break costs and application fees when switching loans but to think long term.

``Borrowers must also remember that today's best interest rate may not be tomorrow's,'' he said.

The comments followed moves by major banks to push up their lending rates, independent of the Reserve Bank, which meets this week to discuss a February increase.

If the Reserve Bank does raise rates, it could take the standard variable rate to 9.92 per cent, the highest level in 17 years.