The report from Barclays Mortgages and the Centre for Economic and Business Research (Cebr) suggests under the scenario that interest rates rise to 1.25% over the next 23 months – currently considered the most likely outcome by their economists – the average home will have to pay an extra 3% or £252 a year on their repayments.

This would take total annual mortgage repayments by UK homeowners to £71.4bn by the end of 2015, up from £69.2bn today.

In the most extreme case, a scenario that Barclays Mortgages and Cebr termed “Drastic but Potential” interest rates would rise to 1.75% in December 2015 and UK mortgage holders would have to pay £5bn more than they do today at the end of 2015.

Andy Gray, Barclays managing director of mortgages said: “In the face of a rise in mortgage rates and in the cost of living, it is vital for homeowners to review their current situation and get advice as to what their next mortgage step should be – so they remain financially flexible in the face of rate rises to come. The impending rise in mortgage rates that we can see from these scenarios will undoubtedly squeeze some homeowners.”