Seven million people may need to refinance if the interest rate rises. According to moneysupermarket.com, if payments increase by up to £100 a month, these homeowners would have to refinance and there are 2.6 million people who would have to refinance if their payments increased by up to £50 a month.

Louise Cuming, head of mortgages at moneysupermarket.com, said: 'The looming rate rise is of grave concern. We feel it could even be a half per cent rise which, according to the survey results will drive an alarming number of people into financial difficulty. Homeowners on a £150,000 interest-only tracker mortgage face additional costs of £750 per year, or £62.50 per month, for every half per cent that interest rates rise.'

Many homeowners will have seen their rates rise by 1.25 per cent or £156 a month in the last year, which is why it's a struggle for so many of them. The price comparison site has urged homeowners who might have difficulty meeting repayments to remortgage ahead of the expected rate increase.

Some 15 per cent of those adversely affected by the last base rate are only barely coping, with nine per cent struggling and already making sacrifices. A further one per cent are selling or remortgaging their homes. Just 12 per cent have budgeted for interest rate rises and 54 per cent of homeowners would have to find a better deal if their mortgage payments rose by up to £150 a month.

Louise Cuming added: 'It is alarming that people are still not budgeting for the increased mortgage repayments a further rate rise will bring. With so many saying they will be forced to remortgage if their monthly payments increase it is staggering more borrowers have not yet factored this in. Even more worrying is that people who are relying on being able to remortgage if their repayments rise may not be able to afford to do so due to the early redemption charges in place on many products. These people need to review their finances and budgeting immediately.'