“Some borrowers facing higher interest rates have taken out mortgages with longer terms,” said the Bank’s Financial Policy Summary in October.
“There has, for example, been a notable increase in the proportion of borrowers taking out mortgages with 35-year or above terms.
“While longer mortgage terms and other forbearance measures could reduce pressures on borrowers in the short term, they could increase debt burdens over the longer term.”
Rising borrowing costs are also piling pressure on other parts of the housing market, as buy to let landlords were also reliant on cheap debt to fund purchases of properties.
“Higher interest rates, together with some structural factors, were also putting pressure on profitability in the buy-to-let sector, which had led some landlords to sell or pass on higher costs to renters,” the Bank of England said.
Private rents in October were up 6.1pc on average compared with the same period of 2022, according to the latest figures from the Office for National Statistics.
The highest increase came in Wales at 6.9pc, followed by London at 6.8pc. Data for Northern Ireland are only available up to August, and show an even higher rate of 9.6pc.
The smallest increases were in the North East of England, where rents rose by 4.7pc.
It means rent growth in every region in recent months has hit the highest level recorded on ONS data going back as far as 2006.