NEARLY one in five homeowners admits they are now struggling to meet their mortgage repayments following recent interest rate rises, latest research showed today.

An estimated three million people have come under financial strain since the Bank of England raised the cost of borrowing five times in less than a year.

Around 11 per cent of homeowners claim they may have to consider selling their property if rates increase further, according to mortgage broker Purely Mortgages.

At the same time, 40 per cent of people say they are now more worried about being able to afford their monthly repayments than at any other time during the past 12 months.

One in five homeowners said a rise of just £40 a month in their repayments would cause them financial difficulties.

The research also found that older people have been worst hit by the interest rate rises, with around half of the three million people who are currently struggling to meet their repayments in the over 50-age bracket.

Purely Mortgages chief executive Mark Chilton said: "We may yet get another interest rate rise this year, and if this happens figures like these are only set to get worse.

"Although interest rates are still historically low, it doesn't take much for people to feel the pinch, especially for older people on lower incomes," Mr Chilton added.

Latest figures from mortgage lenders and estate agents have shown that rising interest rates have been cooling the housing market and hit the level of borrowing people are prepared to take on.

Britain's biggest mortgage lender, Halifax, recently said house prices fell by 0.6 per cent during August, while the Royal Institution of Chartered Surveyors has also pointed to modest price falls across most of the UK.