Liz Truss's economic adviser, Patrick Minford, has recently told the Times that expensive mortgages were "part of the adjustment".
He said: “Hopefully out of this we’ll get to a more healthy economy with interest running at 3, 5, 7 per cent.”
So we've done the maths for you to calculate exactly how much a rise to 5% could end up costing you and your family.
HOW MUCH EXTRA WILL IT COST YOU?
Your New Mortgage Bill
Current Interest Rate
New Interest Rate
Extra Annual Interest Rate Payments
Extra Monthly Interest Payments
Methodological note. These estimates are based on the example of an interest-only floating-rate mortgage, assuming no capital repayments during the year, and further assumes that the applicable rate increases pari passu with the Bank of England base rate. This tool is provided for illustrative purposes only and does not constitute financial advice.