The cost of paying a mortgage has soared by a third in the past three years, according to mform, a new online mortgage company.

The study reports that the average annual mortgage payment in the UK currently stands at £6,284, up from £4,711 in 2003.

The research also reveals that some 1.38m people are spending at least £1,000per month on their home loan. Some 55% of them live in London, where property prices are highest. The fewest live in Yorkshire, representing just 2%.

Eamonn Rice, chief executive of mform, said: "Compared to last year, house prices have increased by around 7.7 percent, and with a further rise in the Bank of England base rate expected, the size and cost of a mortgage will continue to rise."