Increasing numbers of hard-pressed homeowners and tenants are turning to personal loans and credit cards to fund their housing costs.

More than 4 million households have taken out a personal loan or credit card to cover their mortgage or rental costs in the past year, according to a survey by comparison service Moneysupermarket.com.

Tim Moss, head of loans and debt at Moneysupermarket.com, said: "It's a very serious situation when you have people turning to a short-term solution to fund a long-term product.

"Taking out a loan specifically for a mortgage goes against lenders' rules. To be funding your mortgage repayments with a credit card that will charge you interest of over 15 per cent is not the solution in the long term.”

It is not just younger homeowners that are resorting to high-interest borrowing to meet their mortgage or rental costs - twenty per cent of people in their forties have turned to loans or credit cards to keep their heads above water, says Moneysupermarket.com.

About 1.4 million people are coming off short-term fixed rate mortgage deals this year, according to the Council of Mortgage Lenders. With the average standard variable rate now at 7.01 per cent, many borrowers have seen sharp increases in their monthly repayments.

As the cost of mortgage borrowing continues to increase, landlords are also raising rent for tenants. Lee Grandin at Landlord Mortgages says: “We expect rents to rise by 20 per cent over the next 12 months. There are less buy-to-let properties being purchased and therefore less rented accommodation available, which will keep costs high.”

Mr. Moss said that consumers should be pro-active in finding more suitable ways to meet their housing costs: "People have to start ranking what they are spending their money on. You need to rank your mortgage or rent and food at the top and work your way down from there.

"You need to look at your current account and credit card statements and work out what you are spending your money on. Prioritise your expenditure - there's no point having Sky+ if you don't have a roof over your head. You should also shop around so you aren't paying over the odds for the essentials of life such as heating, electricity, food and insurance.

"It is always a shock to people who see a debt manager when they realise how much more disposable income this strategy can produce."

Money Central: the latest house price forecasts, region by region