The value of outstanding mortgages with arrears has increased for the first time since 2016, prompting concerns that home owners relying on credit cards could fall further into the red.

Bank of England data has revealed that mortgage balances with some arrears rose to £14.5bn in the third quarter of 2018, the first rise since the second quarter of 2016.

But the proportion of total loan balances in arrears remained at 1%, the lowest since the series began.

However, Mark Pilling, managing director of Spicerhaart Corporate Sales, warned this may be a warning sign of a wider issue of debt problems.

He said: “There are growing concerns that many people are now relying on credit cards for everyday purchases.

“While many in this situation are able to keep their heads above water now, if there is another rate rise, payment shock coming off a fixed rate deal or rise in the cost of living, many people may struggle to make their monthly mortgage payments or rent.

“The latter in turn will impact landlords and their ability to make mortgage payments.”