How to pay your mortgage
The number of homeowners struggling to pay their mortgage increased by a third in just three months to 1.65 million people in July, the latest figures show.
The Bank of England and the Department for Business, Innovation and Skills (BIS) announced the new figures at a conference in London.
The figures showed mortgage payments had fallen by 0.2% in July from a year earlier, while the number of new mortgages issued in the year to the end of March fell by just over 500,000.
The biggest decrease was in the number with a primary residential mortgage, the amount of debt the borrower can repay, which fell by 7.1% to £1,000 a week.
The average principal amount loaned dropped by 1.5% to the £1.25m a year.
In July, new mortgage rates averaged 0.6% per annum, down from 1.8% a year ago.
However, the rate of interest on existing mortgages was 0.8%, the lowest since March 2011.
A BIS spokesperson said the rate on new mortgages was at its lowest level since June 2011, when the Bank of Scotland raised its rate to 1% per cent.
The rate on primary mortgages rose by 0