See this thread. The phrase originally appears in an early recording of Cyril Poacher's version, which you may know from John Roberts & Tony Barrand on "Dark Ships in the Forest", also apparently on Frankie Armstrong's "Female Frolic".

"On Cyril's first recording of the song, made by the BBC (Child Ballads Vol I, Topic 12T160, 1961 [originally Caedmon]), singer and audience constantly interject the phrase hold the wheel. This allegedly arose as a result of the singer trying to explain the story to a visiting yachtsman who misunderstood had his way as hold the wheel, but by the 1970s Cyril had gone back to the old way of singing it. (ref. notes to Cyril Poacher: Plenty of Thyme, Musical Traditions MT CD 303 )."

~ Becky in Tucson