There were also 81,900 homeowners in mortgage arrears of 2.5pc or more of their outstanding balance between April and the end of June.

Of those, 28,690 were 10pc or more behind with their lender, while 30,940 homeowners fell into the red between 2.5pc and 5pc – a 12pc increase from the first quarter this year and a 23pc jump from the same time last year.

Experts said higher mortgage rates this year were starting to have their effect. 

Lewis Shaw of brokers Shaw Financial Services, said: “This is a sign of the times, and it’ll continue to get worse throughout 2024 as more than 1.4m households will face remortgaging at much higher rates than anyone has been used to for well over a decade. 

“You can’t jack up interest rates at the speed we’ve seen over the past 18 months and not cause households to sink below the waterline.”  

It comes as house price falls were more widespread in July than at any point since 2009 in the wake of the financial crisis, according to a survey of estate agents conducted by the Royal Institution of Chartered Surveyors.

Half of all property sellers in England and Wales were forced to cut their asking prices to get deals over the line last month, the survey said.

The average cost of a property declined by 2.4pc in the 12 months to July, according to the Halifax house price index published this week, having dropped by 2.6pc in June.