An estimated two million mortgage payers would struggle to cope with a rise in interest rates, a think-tank has warned.
The Resolution Foundation warned the number of households spending more than one third of their income on keeping a roof over their head would balloon to 2.3 million by 2018 - even with a "relatively benign" raise.
The more ominous situation of households forced to put half their monthly income towards their mortgage could triple to 0.6 million to 1.1 million.
Both scenarios are based on assumptions that the Bank of England base rate, which has been at a historic 0.5% low for over five years, will approach 3% by 2018, in line with market expectations.
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