About 167,000 homeowners, including 71,000 pensioners, who are struggling to pay their mortgage will see their mortgage benefit payments fall by a typical £756 a year from next month.
Homeowners temporarily transferring hundreds of thousands of pounds into bank accounts after the sale of their property could see up to £1 million protected under new Bank of England proposals.
House prices have rocketed past their 2007 peak to stand at an average of £188,903 across the UK in June, a new all-time high, Nationwide has reported.
The Bank of England will be given greater powers to restrict mortgage loans in plans set out by Chancellor George Osborne to fix Britain's housing market.