Marks and Spencer Group PLC (LSE:MKS) chair Archie Norman has waded into the row over the mini-Budget with a warning it might mean some families not being able to afford their mortgage payments next year.
Gilt yields soared following the first version of the mini-Budget, prompting a warning from the Bank of England it would have to hike interest rates dramatically to protect the pound.
As a result, hundreds of fixed-rate mortgage offers were pulled by lenders while people already on existing deals now face huge hikes in monthly repayments when they come up for renewal.
"Interest rates do have to rise but if they rise as fast as has been forecast, that's really pretty bad for the consumer economy," Norman, a former Tory MP, said in a radio interview.
"It means there will be households next year who can't afford to pay their mortgages and some will be Marks and Spencer customers so I really do mind about that," he added.
Interest rates are expected to peak in the middle of next year just around the time energy bills are also tipped to be at a high due to the impact of the Ukraine war.
New data from Moneyfacts today showed that the cost of a 2-year fixed rate mortgage had jumped to 6.53% and to 6.36% for a five-year fix.