Mortgage payments for the average household have soared by a fifth since the Bank of England first began its policy of raising interest rates to tame inflation, official data shows.
The average monthly home loan repayment has risen from £718 in December 2021, when the Bank started raising borrowing costs from 0.1pc to 5.25pc, to £866 in July, the Office for National Statistics (ONS) said.
The sharp rise likely reflects borrowers rolling on to higher rates as well as those rushing to over-pay in anticipation of their fixed deal ending.
It comes as separate data showed a rapid increase in the number of landlords falling behind on their mortgage repayments.
Figures from UK Finance, a trade body for banks, revealed a 28pc rise in landlords falling into arrears in the three months ending in June from the previous period.
Some 8,980 buy-to-let investors have missed payments of 2.5pc or more of the outstanding balance of their mortgage.
Repossessions of properties also rose by 7pc among landlords, with 440 homes being taken back by lenders in the three months ending in June.
While possessions and arrears remain low compared with historical levels, multiple indicators are now starting to show that the strain of higher borrowing costs is starting to bite.
