Half of homebuyers with a mortgage – 4.4 million - face ‘extreme payment shock’ as a result of higher repayments in the next three years. Figures published by the Bank of England today show that millions of people who are due to remortgage over the next few years will have no option but to sign up to a new deal that has higher interest rates and monthly repayments.

The central bank stressed that UK lenders are still in a strong position to support households and businesses, even if the economic backdrop worsens.

However, about a quarter of borrowers are set to see payments fall, and the Bank said households were better equipped to cope with mortgage repayments than predicted earlier this year. The Bank also warned that global risks to the economy have been rising,