'Shock rise looming' on fixed-term mortgages'

Hundreds of thousands of home buyers could face rocketing mortgage repayments in the coming months, experts warn today.

And as many as 220,000 borrowers on especially low fixed deals could see their payments rise by up to 27 per cent when they have to meet current standard variable rates.

The warning comes from the Capital Economics consultancy run by former Treasury adviser, Roger Bootle. A spokesman said that "recent tightening of monetary policy contains a 'sting in the tail' for a considerable minority of borrowers".

? The International Monetary Fund today warned UK house prices could fall sharply and the market may slow markedly in the next 18 months, based on interest rate rises priced into future markets.