Rishi Sunak has insisted his plan to halve inflation is one of the best ways of serving to mortgage holders.

The Prime Minister, who welcomed Swedish counterpart Ulf Kristersson to No10 on Monday, vowed to “stick to the plan” as he dominated out a authorities bailout for struggling households.

Ministers have been urged to finish the “mortgage horror show” as the typical fastened two-year price on supply topped six % for the primary time this yr.

Mr Sunak mentioned: “I know the anxiety people will have about the mortgage rates, that is why the first priority I set out at the beginning of the year was to halve inflation because that is the best and most important way that we can keep costs and interest rates down for people.

“We’ve got a clear plan to do that, it is delivering, we need to stick to the plan.

READ MORE: Boris just emerged clear winner from Remainer 'show trial' – now watch what he does next

“But there is also support available for people. We have the mortgage guarantee scheme for first-time buyers and we have the support for mortgage interest scheme, which is there to help people as well.”

Data from Moneyfactscompare.co.uk exhibits a drop in availability of mortgage merchandise. A complete of 4,683 are in the marketplace, down from 4,923 on Friday – however nonetheless greater than the three,890 on supply earlier than the September mini-budget.

The Resolution Foundation think-tank has mentioned common annual mortgage repayments are set to rise by £2,900 for these renewing subsequent yr.

Former Bank of England deputy governor Sir Charlie Bean mentioned it could be “risky” for the Government to guard mortgage holders in opposition to rising rates of interest.

And a Treasury supply has mentioned: “Borrowing money to subsidise mortgages risks fuelling inflation further, forcing the Bank of England to respond with even higher interest rates.” The Bank is broadly anticipated to extend charges once more on Thursday.

Lib Dem chief Ed Davey urged the Government to take motion. He mentioned: “The time for the Government to step in is now, anything else will be a disaster for struggling families worried about losing their homes.”

No10 acknowledged it was a “concerning time for homeowners, for mortgage holders” however mentioned there was a “raft of support” accessible. The PM’s official spokesman mentioned he was “not aware of any plans” for ­additional interventions, regardless of rising charges, pointing as a substitute to current cost-of-­dwelling help, equivalent to assist with vitality payments.

On help for mortgage holders, the spokesman mentioned: “The Chancellor met with lenders in December. They agreed to support borrowers including through potential options such as term extensions, moving to interest-only payments where appropriate.

“The Financial Conduct Authority has a new consumer duty which comes into force at the end of next month which is a step change on how firms are required to focus on delivering good outcomes for consumers.

“There is government support as well – the support for mortgage interest scheme – for strugglingborrowers on certain benefits.

“We offer a loan to help people pay the interest on their mortgage.

Around 2.4 million fixed-rate mortgages are due to end between now and the end of 2024, according to figures from UK Finance.

Many of these homeowners could be in for a bill shock when they come to remortgage, having been used to paying significantly lower rates.

Samuel Mather-Holgate, an ­independent financial adviser at Mather & Murray Financial, said: “The quickest, easiest and most ­sensible thing the Government can do is to stop the Bank of England raising interest rates.”

Some housing market consultants expressed issues that giving some additional type of mortgage reduction may create additional points and probably make the scenario worse.

Graham Cox, founder at SelfEmployedMortgageHub.com, mentioned: “Any mortgage interest relief or other support would increaseinflation. It could also spook the markets.”