Mortgage rates have officially broken the 6% barrier.
Average rates for home loans are now back at the level that prompted the resignation of Liz Truss as Prime Minister at the end of last year.
New data released yesterday by Moneyfacts showed the average two-year fixed rate increased from 5.98% on Friday to 6.01% yesterday morning.
Landlords are also seeing higher borrowing costs, with average rates on a two-year fix rising to 6.21% to 6.3%.
It comes as lenders anticipate that the Bank of England will increase the base rate this week.
The higher pricing may well hit buyer demand but could also create forced sales as homeowners seek to manage rising costs by downsizing.
Millions of homeowners could be at risk of defaulting on their mortgage if interest rates move upwards again this week, according to research from data firm Moneyhub.
Its survey found a quarter of homeowners with a mortgage said that a further interest rate rise would mean they won’t be able to afford their mortgage payments.
A third said they were concerned that they will not be able to afford their mortgage when they remortgage due to rising rates.
Suzanne Homewood, managing director of decisioning at Moneyhub said: “Times are challenging for homeowners.
“Mortgage rates continue to rise to levels not seen since before the financial crisis and other essential costs are eroding financial buffers, leading to a complex situation and increased risk for both consumers and lenders. It’s clear that there needs to be more support for those remortgaging or on tracker or variable rates who will be feeling the impact of rising monthly payments.”
Meanwhile, Liberal Democrat leader Ed Davey has repeated calls for Prime Minister Rishi Sunak to step in and support struggling borrowers.
Davey said: "The time for the Government to step in is now, anything else will be a disaster for struggling families worried about losing their homes.
"This Government is sitting on their hands, giving no help to ordinary working people who suffer. It's just plain wrong.
"Liberal Democrats are calling on Rishi Sunak to finally listen to those who need help and immediately end this mortgage horror show with a Mortgage Protection Fund."