Surging government debts threaten to hammer the British economy and drive up borrowing costs for households, businesses and the Treasury, the Bank of England has warned.

More work is needed to tackle risks outside the banking sector, according to a Bank of England study which found that a market crisis would be amplified by fire sales of assets by pension funds, hedge funds and other investors.

The Bank of England has warned millions of borrowers they face higher mortgage rates for longer in a report - watch live below as governor Andrew Bailey holds a news conference on the findings.

More than four million UK households could see their mortgage repayments hiked over the next three years, the Bank of England has warned.