The average mortgage interest rate has risen to above 6% meaning households are paying the greatest portion of their income on mortgage payments since 1989.

Mortgage holders are now paying average interest rates of 6.07%, according to data from Moneyfacts, the financial information company.

Interest rate repayments on two-year fixed mortgages have surged from 2.25% a year ago to 6.07% today.

A similar rise has been seen in the average interest rate on five-year fixed mortgages, which now is 5.97%, an increase from 2.55% a year ago.

The increases have resulted in the highest mortgage rates since 2008.

The rate increase has been swift and concentrated over the past two weeks.

On the day of Kwasi Kwarteng’s mini-budget on 23 September they were 4.7%.

The increase has meant households now pay 27% of their income on mortgage repayments, the highest mortgage burden since 1989.

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The number of mortgage products on the market has also declined as lenders face uncertainty over future rate increases.

The Bank of England has said it is determined to raise interest rates even further than previously expected in an effort to curb rising inflation.

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