Homeowners could face the biggest jump in the cost of their fixed-rate mortgages on record, an expert has warned.

George Buckley, an economist with Deutsche Bank, told the Daily Mail those looking to refinance their mortgages could be hit with far greater costs than the last time they fixed their payments.

He said this is a bad time for consumers generally: "Taxes have gone up, confidence has fallen, and people are having to think about putting more money away for their pensions. Growth in incomes is also weak."

For some homeowners already struggling with higher bills and the cost of debt, a jump in the cost of their mortgage could be an increase too far and it could seem likely they will become bankrupt.

However, the government created individual voluntary arrangements (IVAs) to help debtors avoid bankruptcy.

IVAs are a route out of debt which allows the borrower to retain key assets such as the family home.