The FCA defined mortgage borrowers as being financially stretched if more than 30% of their gross household income was going towards mortgage payments and they were not already behind on payments.
It said that younger homeowners and those living in London and the South East of England were most likely to find themselves in this situation.
The previous analysis used to calculate the Bank rate, based on market expectations in September of last year, which saw the Bank rate peak at around 5.5%, as opposed to a peak of around 4.5% in February expectations.
If you're struggling to pay your mortgage or worry about it, you don't need to manage alone. There are a number of tools available for you to use.
Get in touch as soon as you have concerns, don't wait until you're about to miss a payment. It won't affect your credit rating if you talk to them about your options. Mortgage rates went up last year, making it more expensive than most homeowners have seen for at least a decade. Rates went up after the mini-budget, but have settled down since lenders compete again for borrowers.
What happens if I miss payments? How do I deal with it together?
Any arrangement you come to, the FCA points out, will affect your credit file - and affect your ability to borrow money in the future, as well as any missed payments.
Your lender might allow you to extend the term of the mortgage or allow you to pay just the interest for a period of time.
Lenders may offer a mortgage holiday that allows you to delay payments based on individual circumstances and not to those already in arrears, but not indefinitely. This will show up on your credit file.