In a new report issued Thursday, the UK’s National Institute of Economic and Social Research (NIESR) has warned that homeowners in Britain may have to pay 50% more on their home mortgages by the end of 2023 as a result of the interest rate hikes by the Bank of England.

The report went on to note that the higher mortgage payments may wind up wiping out the savings of 1.2 million British families, which would raise the number of insolvent households to 7.8 million households in the nation, making 28% of British households insolvent.

The report also found that the rising repayments would eliminate 0.3% of the Gross Domestic Product (GDP) of the UK, as it drained households with home loans of £12 billion ($15.2 billion) per year.

The report from NIESR came on the heels of the BoE’s decision Thursday to increase the base interest rate by 50 basis points to 5%, as the central bank looks to rein in a persistently high inflation rate in the nation.

Although annual consumer price inflation was stable at 8.7% in May, the core inflation reading, which removes volatile energy, food, alcoholic beverages, and tobacco, increased to 7.1%, the highest level since 1992.

Max Mosley from NIESR said, “The rise in interest rates to 5% will push millions of households with mortgages towards the brink of insolvency.” he went on to note that a family which took out a mortgage at a rate of 1-2% may now see that rate surge to 5%.

He went on, “No lender would expect a household to withstand a shock of this magnitude, so the Government shouldn’t either. Some investment should be done in forbearance agreements, giving households and lenders the ability to create payment plans that work for each other.”

As of Thursday morning, the average variable-rate home loan in Britain has increased by more than 100%, rising from 3% to 6.19%. The effects of this will be seen in roughly 4 million UK households that either have variable-rate mortgages, or who will have to remortgage as their fixed rate mortgages mature.

NIESR calculated that if a household has borrowed £300,000 ($381,000) on a 25-year mortgage, the monthly payments will have already risen from £1,400 ($1,780) to £2,000 ($2,540), a nearly 50% increase. It warned that given the Bank of England is expected to raise rates even further, these costs will only increase going forward.