Although the Band of England reduced the base rate last month, the average fixed-rate mortgage has risen in cost, a new report has claimed.
Online price comparison website moneysupermarket.com has warned that despite a slight fall in price for those applicants with an "excellent" credit score, most people seeking a new fixed-rate will find themselves worse off.
Louise Cuming, head of mortgages at the website, said homeowners who put off locking into a fixed-rate deal in the hopes of an interest rate cut will now be worse off.
"I shudder to think what would have happened to the average fixed-rate mortgage if the Bank of England hadn’t cut rates," she added.
For some households, the rising cost of their mortgage repayments will combine with the increasing cost of fuel and food to place additional strain on their finances.
There has been speculation that this economic situation will force more people into insolvency in 2008, as the credit crunch impacts their ability to refinance.