Research from Moneysupermarket.com has revealed that 9% of people have had to spend a lot more on their credit cards because of increased housing costs.

The research has also found rising mortgage or rental costs have forced 7% of people to take a personal loan in 2007.

But according to the study, 20% of people in their 40s have been forced to turn to loans or credit cards to keep their heads above water. And with GBP30 billion worth of mortgage deals coming to an end in July 2008, many more people will be thrown into the vicious situation of facing much higher monthly repayments.

Tim Moss, head of loans and debt at moneysupermarket.com, said: “It's a very serious situation when you have people turning to a short-term solution to fund a long-term product.

“Looking for a loan or racking up interest on your credit card isn't the answer to your mortgage or renting worries. You need to look at your current account and credit card statements and work out what you are spending your money on.”

Other reports suggest that lenders have been scrapping cheap mortgage offers with internet bank, first direct, announced in April that it had temporarily withdrawn all its mortgage products in an attempt to clear a backlog of customer applications.