Last week the Bank of England said the worst-case scenario for the current Middle East conflict could see inflation rising above 6%.

This could mean base rate rises from its current level of 3.75% to 5.25%, with mortgage rates rising even higher.

Moneyfacts suggests said that for a £250,000, 25-year mortgage this would mean monthly repayments rising by nearly £300, from £1,445.50 before the conflict to £1,727.

That would hike the typical yearly mortgage bill from £17,346 to £20,724, a rise of £3,380.

Moneyfacts head of consumer finance Adam French said: “The Bank of England’s ‘Trumpflation’ stress scenarios lay bare just how damaging the economic repercussion of the Iran conflict could become.

“At one end, a relatively benign path would see energy prices ease quickly, with inflation peaking at around 3.6% before falling back below target next year. At the other, a prolonged period of elevated oil prices could drive inflation as high as 6.2%, forcing a much more aggressive response from the central banks rate setters.

“The Bank’s central case, where inflation proves stickier and energy costs fall more slowly, suggests a “higher for longer” environment, with mortgage rates holding roughly where they are now at 5.5-6% and annual costs running £1,050–£1,950 above pre-conflict expectations.

“Historical analysis by INTEREST from Moneyfacts shows mortgage rates typically sit around 1.5 to 1.75 percentage points above Base Rate, which would put average borrowing costs over 6.5%. That would translate into an increase of more than £3,000 a year for many borrowers – a devastating hit to affordability.”