Will interest rates go up? Britons on variable rate mortgages face £70 hike

What happens if interest rates go up?

Mr Jones warned that Britons on standard variable rate mortgages would suffer the most from a higher interest rate.

He said the “more than two million” households on the plan would “see their monthly repayments increase immediately”.

He added: “A 50 bps hike would add around £70-a-month to the costs of a typical £250,000 mortgage.

“It would also make life considerably more difficult for first-time buyers still trying to get a foot on the housing ladder.”

Mr Jones said the raised rate could also push Britain closer to recession.

He said: “There is also the very real risk that a hike of this magnitude would risk tipping Britain into recession.

“Ordinary workers have already seen their disposable incomes eroded by inflation, and interest rate rises would reduce consumer purchasing power even further.”