Rising Interest Rates Put Homeowners at Risk, Warns Former Bank of England Deputy Governor

The former Bank of England deputy governor, Sir Charlie Bean, has warned that it would be "risky" for the government to protect mortgage holders against rising interest rates.

According to a report from the Resolution Foundation think tank, average annual mortgage repayments are set to rise by £2,900 for those renewing next year, and total annual mortgage repayments could rise by £15.8bn by 2026.

The Bank of England raised interest rates to combat inflation, which is now expected to continue until the middle of next year, with the base rate forecast to peak at nearly 6%.

The rising interest rates are causing difficulties for homeowners and there have been calls for the government to help those with mortgages.

However, Sir Charlie warned that such intervention could force the bank to raise interest rates even more.

The government's target of getting inflation down would allow the bank to reduce interest rates, according to Housing Secretary Michael Gove.