Creditfix said it had seen the proportion of homeowners approved for an IVA rise from seven to 13 per cent since last year. It put this down to homeowners struggling with rising mortgage costs and warned that the average six per cent rate was having an impact on those on variable rates and people due to refinance. 

Its data also showed that the level of unsecured debt taken out by homeowners had risen by a fifth since last year. 

Based on a survey of 150,000 customers, it found that the average debt held by a homeowner stood at £31,071 in June. This was 74 per cent higher than the average £17,817 debt held by non-homeowners. 

Paul Mason, CEO at Creditfix, said: “Homeowners coming to the end of a fixed rate deal or on a variable rate face increases to monthly repayments in the hundreds or even thousands of pounds and this will have a devastating impact on people, regardless of their financial position.  

“We’re seeing more homeowners than ever before seeking debt advice as a direct result of rising mortgage rates. Mortgage repayments should always be the first consideration when assessing outgoings, but such a steep increase can have a huge knock-on impact on other unsecured debts and we’re seeing those who previously had manageable debt levels unable to keep on top of it.” 

Mason added: “At Creditfix we help hundreds of people to deal with their debts every day and understand how difficult it can be to confront a seemingly daunting financial situation. At such a challenging time, I would urge anyone with concerns about their finances to seek specialist help as soon as possible.”