When interest rates increased again it was another blow to families holding mortgages and loans. Families with a £100,000 homeowner loan will have experienced a 20% increase in the amount they must repay on their mortgage within the last 12 months.

The current repayments are now between £655 and £660 a month, according to the Principality Building Society, up from £555 and £565 from a year ago.

The Citizens Advice Bureau (CAB) and the Council for Mortgage Lenders warned that families struggling with their loan repayments may fall so far behind they will have their homes repossessed.

The organisation’s social policy officer for Wales, Gwyndaf Hughes, said, “There are more people going into local bureaux who are falling behind with mortgage payments and in some cases are threatened with repossession.

“We know some people are taking on mortgages that stretch them to the absolute limit.

“A rise in mortgage interest rates could spell disaster for people whose finances are balanced on the very edge of affordability.”

Director of the Welsh Consumer Council Nich Pearson warned that for many Welsh families with mortgages, credit cards and loan debt, the last five interest rate increases have caused a desperate situation.