The proportion of households paying more than 20pc of their gross salaries on mortgages and other debts is now higher than it was in 1991, amid the last housing crash.

The revelation comes in the Bank's Quarterly Bulletin, which also showed that the proportion of households facing trouble maintaining payments is at the highest level for almost 15 years. It underlines the struggles families are facing, with interest rates having touched a peak of 5.75pc earlier this year.

Although the Bank has now cut the cost of borrowing by a quarter percentage point, an increased number of families are expected to be hit by higher mortgage costs in the wake of the credit crisis on financial markets.

The Bank's report said: "A slightly higher proportion of mortgagors in the 2007 survey devoted a relatively large share (more than 20pc) of their pre-tax incomes to debt service than was the case in the 1991 [survey] when nominal interest rates were over 10pc."

However, the Bank indicated that it was reassuring that, meanwhile, the number of people reporting problems paying their mortgage was still lower than in 1991.

The report also highlighted the plight of those who are not yet on the housing ladder. It said that a fifth of renters with unsecured debts on credit cards and overdrafts said their debts were now a "heavy burden" - a record level.

Meanwhile, the flow of money into the world of commercial property has turned negative for the first time in many years as investors flee the troubled sector, the report shows.

The Bank raises particular alarm over the state of the office building market. It reports that returns from commercial property have dived into negative territory - and warns that losses from the sector could worsen even more in the coming months.

In its comprehensive look at markets, the Bank also indicates that the turmoil in the City's money markets can now officially be classified as a credit crisis, with banks increasingly concerned about the state of each other's balance sheets.

However, it said one of the biggest worries facing the markets was the knock-on effect of a crash in the commercial property sector.

"A particular concern among contacts related to the position of funds which invested exclusively in commercial property," it said. "UK property funds recorded net redemptions in October from both retail and institutional investors. In the same month, commercial property prices fell sharply in the United Kingdom and returns on commercial property slowed significantly.

"To the extent that commercial property funds became forced sellers of their assets, this could potentially further undermine returns."


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