Homeowners have been warned they face paying almost £10,000 a year more on their mortgage if interest rates continue to climb.
Interest rates are now expected to rise to 6% next year - far above the 1.5% rate projected just months ago.
The Bank of England last week hiked its base rate to 2.25% - its highest level in 14 years - as it battles to bring down soaring inflation.
The base rate is important because it is what the central bank charges other banks and lenders.
In turn, this then affects the rates banks charge you, as their customer - so when interest rates are higher, borrowing becomes more expensive.
If you have a tracker mortgage, your monthly repayments will move in line with the base rate.
Many standard variable rate (SVR) deals also become more expensive, although it is down to your lender to decide whether they put up your rates.
If you have a fixed-rate mortgage, then you’ll be protected from any rises until your current deal comes to an end.
For those who are coming off a deal in the coming months, the expected future rises mean they face paying thousands of pounds more.
Someone who bought in the first half of 2021 could see their monthly repayments jump from below £900 to £1,696, if interest rates are hiked to 6%.
This adds up to around £800 extra a month, or £9,600 a year more, according to the The Telegraph, who used the example of someone coming off a two-year fix.
If you have six months or less to run on a fixed rate mortgage, it’s worth shopping around for a new rate.
"You can lock in a deal up to six months in advance and protect yourself from rises," said Sarah Coles, senior personal finance analyst at Hargreaves Lansdown.
"Given the market turmoil, you may want to talk to a mortgage broker who is across the market and can track down the best rates."
Keep in mind that banks have been slowly increasing their rates since last November in anticipation of future rate hikes - so deals aren't as cheap as they used to be.
If you're on a tracker mortgage, you should also compare prices - but do check if there are penalties if you leave your current deal now.
If you do have early repayment charges, you'll either need to wait for your initial deal term to run out, or pay the charge to leave early.
Borrowers should use a mortgage comparison to check whether you are on the cheapest deal - we've got a guide on how to find the best rates here.
Some lenders, including Halifax, Virgin Money and Skipton Building Society, pulled deals for new customers last night after the pound sent shockwaves through markets by dropping to an all-time low against the US dollar.
Halifax said it was temporarily withdrawing all products that come with a fee “as a result of significant changes in the cost of funding”.
