British homeowners with mortgages have faced a more severe financial squeeze than renters in recent years, according to new data that reveals the impact of high interest rates. The findings highlight how mortgage holders have been disproportionately affected by the cost-of-living crisis compared to those who rent their homes.

Since 2022, interest rate hikes have pushed up monthly mortgage payments significantly, while renters have seen more modest increases in their housing costs. This disparity has widened the gap between homeowners and renters, with many mortgage holders struggling to keep up with rising payments amid broader inflationary pressures on household budgets.

The data underscores the vulnerability of homeowners to interest rate fluctuations, particularly those who took out mortgages when rates were at historic lows. As central banks have raised rates to combat inflation, the burden on mortgage holders has intensified, creating a stark contrast with the relatively more stable rental market.