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 Many people are facing a battle to avoid repossession because mortgage rates have increased in recent months.
That is according to Firstrung, which said that the economic situation is leaving many people in real financial difficulties.
The firm pointed out that even cuts to the base rate of interest have done little to ease the problems and many people are struggling to avoid repossession.
"Irrespective of the Bank of England interest rates being fairly moderate, now back to five per cent, the average standard variable rate from a lender is approximately seven per cent," commented Paul Holmes from Firstrung.
"The boom in prices also came with an associated boom in mortgage products and a lot of those mortgage products were subsidised with what the Americans called 'teaser rates', rates perhaps one per cent below the Bank of England interest rate.
"Now people are coming off those teaser rates they are finding that their payments are ballooning by up to 25 to 35 per cent in some instances," he added.
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