A one percentage point Bank of England interest rate rise would increase mortgage payments by £99 a month or £1,188 a year, according to TotallyMoney.

The credit app worked out the figures based on a 75% LTV mortgage on the average UK property costing £270,708.

And it’s warning borrowers of significantly higher mortgage payments as a result of the Bank of England’s interest rate rises. The Base Rate has already been hiked three times in a row from 0.1% to 0.75% and is widely tipped to rise to 1% tomorrow.

One in four mortgage customers currently have no protection against interest rate increases and are already facing higher payments, said TotallyMoney. This will increase as fixed-rate deals come to an end and customers are moved onto standard variable rate mortgages.

The mortgage rate rises come as households are being stretched to the brink, with the latest ONS figures showing real wages have fallen by 1.2%.

Alastair Douglas, CEO of TotallyMoney said: “As the Bank of England increases the base rate to ease inflationary pressures, the 2 million homes on variable-rate and tracker mortgages will see their household finances squeezed even more.

“And the situation isn’t going to get much better for those nearing the end of their current deals. They have a choice of facing the more expensive SVR or having to switch to a new, and more expensive fixed-rate product.

“Customers feeling the squeeze from the increased cost of living should consider cutting back on using expensive credit lines such as overdrafts, and move interest-bearing credit card balances to a 0% offer. By reducing the interest being paid, customers can repay their debts quicker, or use the money saved to cover other costs.”