Major UK banks are strong enough to handle a severe economic downturn, but small businesses and households are being squeezed by higher interest rates and living costs, the Bank of England has found.Nearly one million households tied to a fixed-rate mortgage will have seen their monthly repayments soar by about £500 by the end of 2026, it revealed.

Major UK banks are strong enough to handle a severe economic downturn, but small businesses and households are being squeezed by higher interest rates and living costs, the Bank of England has found.Nearly one million households tied to a fixed-rate mortgage will have seen their monthly repayments soar by about £500 by the end of 2026, it revealed.