Thousands of Britons are turning to payday loans to hide rent or mortgage problems, according to new research.

The research, commissioned by Shelter, found that nearly one in five rent or mortgage payers has borrowed money to cover their housing costs.

2% – the equivalent of nearly a million people in Britain – said they had taken out a ‘payday’ loan to help pay the rent or mortgage.

In the past year, the number of people coming to Shelter who can’t pay their rent or mortgage has risen by almost a third. But the charity’s advisers are warning that for every person seeking help, many will be keeping their problems hidden.

The survey found that as many as one in four of us would feel too ashamed to ask for help if we couldn’t cover our housing costs – and even more wouldn’t admit their problems to family or friends.

Shelter are urging people to get advice early through their website, helpline or face-to-face services for the best chance of keeping their home. Advice can range from negotiating ‘mortgage holidays’ with lenders to helping with realistic repayment plans for rent arrears.

Campbell Robb, chief executive of Shelter, said: “Sky-high housing costs, stagnating wages and the high cost of living have taken their toll. The economy as a whole might be on the up, but losing our home could now be a frighteningly real prospect for any one of us.

“Our message today is don’t keep your worries to yourself: Shelter’s expert advisers can be the difference between keeping your home and losing it.”