Rishi Sunak has been accused of being “out of touch” after telling the public to “hold their nerve” amid soaring interest rates.

The billionaire Prime Minister has faced concerns he is “patronising the public” after a weekend television interview in which he was criticised for his advice to those facing hiked mortgage repayments.

At Prime Minister’s Questions, SNP Westminster leader Stephen Flynn told the Commons: “On Sunday, the Prime Minister patronised the public when he told them that in the face of ever-increasing mortgage bills that they simply need to ‘hold their nerve’.

“What a nerve. So may I ask him, the near-billionaire, when was the last time that he struggled to pay a bill?”

In response, Mr Sunak said: “The reason that mortgage rates are rising is because of inflation.

“That is the root cause, which is why it’s absolutely the right policy to tackle, halve inflation and reduce it back to target.

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“Now, that does mean that we do have to make difficult decisions. It does mean we have to be patient while the impact of those decisions actually has an impact.

“But in the meantime… we are taking practical steps to support mortgage holders across the United Kingdom, particularly through the SMI (Support for Mortgage Interest) scheme and the new mortgage charter.”

The Prime Minister accused the SNP of “complete economic illiteracy”.

SNP Westminster leader Stephen Flynn said: “This Prime Minister is out of touch, and the Tory Party is soon to be out of time.

“And what the public really want is change. But in a week where the Conservative Party and indeed the Labour Party both refused to accept proposals for public sector pay rises whilst at the same time accepting the economic damage of Brexit, is it not the case that Westminster does not offer the people real change nor real hope for the future?”

Read more: Rishi Sunak: mortgage holders must 'hold their nerve' as rates surge

Mr Sunak responded: “The honourable gentleman just exposes the complete economic illiteracy of the SNP position. His first question talks about the challenges posed on ordinary families by higher interest rates caused by higher inflation.

“What does his next question do? Support a policy that would increase Government borrowing and make the situation worse.

“It just demonstrates completely candidly why the SNP’s approach to economic management is simply not fit for anyone in the United Kingdom.”

Mr Sunak also claimed he has “taken significant action to help families across the country”, as he was pressed on rent rises in England amid mortgage rate increases.

Labour’s Janet Daby raised the case of a constituent, asking: “A university student in Lewisham East has seen her rent rise by £200 a month due to the mortgage rate increases.

“She’s now at risk of homelessness and she can’t return to the family home.

“She’s no choice but to use food banks, even though she has two part-time jobs. Not only is she falling behind in her studies, she’s falling further into debt and she’s falling into depression.

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“What does the Prime Minister say to constituents like mine who are paying the dual price of this Government’s cost-of-living crisis and mortgage rents crisis?”

In response, Mr Sunak said: “We’ve taken significant action to help families across the country, most notably by taxing the windfall profits of energy companies and using that money to pay around half of a typical family’s – including all of her constituent’s – energy bills.

“That support is worth £1,500 and I’m pleased that energy bills are forecast to fall £430 when the price cap resets in a couple of days, but beyond that there’s considerable support for the most vulnerable in our society including £900 of cost-of-living payments for those on universal credit and additional support for pensioners and indeed disabled people, and that’s what we’ll continue to do.”