Jeremy Hunt has ruled out any form of rescue package for homeowners who face shocking rises in their mortgage payments amid fears of a crash in the housing market.

Speaking to MPs in the Commons, Hunt warned that government support to mortgage holders would prolong the “inflationary agony” and that the best way to help households in the long term was to bring down inflation. Any mortgage relief scheme – similar to support previously introduced to shield households from soaring energy bills – would fuel prices rises, he said.

The Chancellor will be meeting mortgage providers later this week to look at ways they could help homeowners struggling with their mortgage payments.