UPDATE 1-Bank of England's Carney warns house-buyers on rates - newspaper

Friday, 29 Nov 2013 | 3:27 PM ET

LONDON, Nov 29 (Reuters) - Bank of England Governor Mark Carney has warned would-be British homeowners to consider the risks of higher interest rates, amid concerns that rising house prices could create a property market bubble, a newspaper reported on Friday.

"Think about the mortgage you are taking on, the debts you are taking on," Carney was quoted as telling The Guardian.

"Are you going to be able to service that mortgage five years from now, 10 years from now, if interest rates are higher?"

On Thursday, the BoE unexpectedly said it would put the brakes on a scheme launched last year to help boost mortgage lending and would refocus it instead squarely on lending to businesses.

Earlier on Friday, data showed British house prices in November rose at their fastest pace in three years and mortgage approvals hit a nearly six-year high last month.