First-time buyers face an extra bill of £1,000 per year when they come to remortgage as rising interest rates start to ramp up the cost of borrowing.

The average buyers getting their foot on the housing ladder borrowed £145,368 in June, the highest amount on record, according to industry group UK Finance. Despite the size of the loans, low interest rates mean monthly repayments are just £605 on average, or £7,260 a year. This amounts to only 17.2pc of the buyers’ income, almost the lowest proportion ever. However, rising interest rates will change this.

The average buyer fixes their loan rate for three years. Economists expect interest rates to rise another three times over that period, on top of August’s rise.