British families are feeling the effects of the five base rate rises as interest payments on their mortgages consume more of their household income, an expert has said.
New research by Alliance & Leicester reveals families have cut back on their saving and on borrowing as they struggle to meet higher mortgage costs and household bills.
It discovered even falling interest rates on unsecured borrowing have not tempted mortgage holders back as their family budgets are under pressure.
Mortgage holders are 50 per cent more likely to try and reduce their unsecured borrowing over the next six months, Alliance & Leicester discovered.
However, the research also showed that those living in rented accommodation are not cutting down on their debt but are worrying more about borrowing than those with mortgages.
The government urges anyone who is concerned about meeting their mortgage repayments to contact their lender as soon as possible, as they can be sympathetic.
It warns that mortgages should be treated as "priority debts" as failure to keep up payments could cause holders to lose their homes.