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 Britons are facing increased costs across a range of bills as financial difficulty continues, with the average family now £1,300 worse off a year despite the latest cut in the base rate.
Last week the monetary policy committee moved to cut interest rates by 0.25 percentage points, leaving the base rate at 5.25 per cent.
However, many homeowners are finding it difficult to meet their mortgage repayments, with rising costs proving a challenge and fears of repossessions even emerging.
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Legal & General mortgages director, Ben Thompson, said that more cuts would be needed in order to ease the pressure on the mortgage market and borrowers.
"While council tax, utility bills and household costs have risen by more than a third in the past four years, the average family is £1300 worse off a year," he said.
"This has contributed to a nervousness amongst borrowers about their debt to income ratio resulting in a higher than expected proportion choosing the security of a fixed rate mortgage."
Last week the Council of Mortgage Lenders revealed more than 27,000 homes were repossessed by lenders in 2007, with that figure potentially rising if costs continue to soar.
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