Mortgage rates will still be relatively low historically, but the contrast to the record low rates seen during the pandemic will be huge. “Rates were at sub 1pc, now they are at 2pc. They have already doubled,” added Mr Cox.

Homeowners who purchased properties in the last few years with ultra-cheap mortgage rates, while paying less tax on their income, which meant they had higher incomes in the eyes of lenders, will be in a “radically different” situation if they try to remortgage next year, said Mr Cox.

The affordability crunch will hit harder because high house price growth and a shortage of homes in the wake of the pandemic meant buyers stretched themselves. “People have been borrowing to the maximum of what they can because prices are so high. These directors are leveraged up to the hilt,” said Mr Cox.

House price growth in March hit an 18-year high of 14.3pc, according to Nationwide Building Society. Home values have increased by 21pc since the start of the pandemic.

At the same time, all borrowers will be grappling with rapid increases in their outgoings due to the cost of living crisis.

Petrol prices have hit record highs, just as energy prices have surged following the 54pc rise in the energy price cap this month. A further rise is anticipated in October. Inflation, which the Bank of England has warned will hit 10pc this year, will further eat into disposable earnings.

The dividend tax rise means that a person earning a £8,840 salary plus dividends up to £50,270, just within the basic rate threshold, pays an extra £446 in tax, according to analysis by Cowgills accountants.

Dividend earnings within the higher tax bracket, from £50,270 to £150,000, are now taxed at 33.75pc, up from 32.5pc. A person with the maximum earnings in this bracket now pays an extra £1,247 in tax. Additional rate tax payers now face rates of 39.35pc.