'Interest rates rise means I owe £250 a year more on loans'

Image source, Patrick Reid

The Bank of England raised interest rates by half a percentage point, the largest increase in 27 years.

People can be affected by rising interest rates in many ways.

Savers may give a small cheer because it can increase the cost of borrowing.

Five people were spoken to about how higher interest rates would affect their lives.

Patrick is worried that an interest rate rise will cost him thousands of dollars.

I have personal loans and credit cards worth £25,000 and any increase will be very noticeable.

I will need to pay another £250 a year to keep up with my debts, but I have worked out how much I need to pay.

If my customers stop patronizing my business it will be financially painful.

All of the non-essential items will be cut from my budget because I will have to tighten my belt.

I'm very concerned about future rate increases. The UK can't take another hike. Businesses will suffer as a result of it.

The story has been changed to say that the £250 was not a monthly amount.

Image source, Wayne Trim

A customer services manager at Morrison's is Wayne Trim. He is concerned about the impact on his mortgage.

My mortgage payments have gone up from last year, and will continue to go up.

That could make it difficult for me to get to work. I moved to a new place a few months ago. The drive is an hour. They gave me a pay rise to move stores, but I needed a new car, which took a lot of my pay rise.

I purchased a hybrid. I fill it up for about 200 a month.

Everything is going up around the world. Food and fuel. We can look at the food shop and be more creative. Morrison's gives me a discount for working there.

You think you're in a good place, but then you start to feel like you're in a bad place. It's like trying to make ends meet for a long time.

I'm paying back some loans that cost me about $270 a month. I'm looking forward to that finishing in April.

I'm easy to get along with. I'm not sure why they're increasing the rate. They say it's to curb borrowing but I don't think that's true.

Image source, Louise Parker

Louise and her husband are having to rethink their plans because of rising interest rates.

We own a home that we own in the first place and have a decent mortgage rate for two years.

We have had to rethink how much money we can borrow. Considering we wanted to move to start a family, we are wondering if we should bother moving at all.

We have two options, either to stay where we are or move to a place that is less expensive.

If we move, we are worried about how long we should fix for. If rates go up even more, we don't want to have to downsize because we can't afford the repayments.

I have to think about interest rates. It is a new challenge.

Image source, TOM HARRISON

Edmund Wood wants to buy a home close to London so he hopes the interest rate rise will help his deposit grow more quickly. He is hoping that rising rates will help his business.

I like the idea of an increase in interest rates. My savings will go up quicker if I get more interest on my deposits.

Property prices have risen every month for the last 12 months, and I'm worried about that as I prepare to buy a house.

If I was ready to buy now, I wouldn't be able to, but in two years when I've saved up, hopefully house prices will fall again, which will leave me in a better position to buy.

By that time, I will be able to get a stable interest rate on a mortgage.

If interest rates go up, it will be good for my business. It should leave people with more money in their pocket at the end of the month.

Image source, Paola Dyboski

Paola Dyboski is the owner of a small manufacturing business in North Wales that she fears will be affected by the rate rise.

We're trying to find growth in export markets.

With expansion on the cards we would look to borrow to increase production and output.

Increased interest rates will make this riskier and more difficult. The viability of the UK manufacturing base will be questioned.

I'm worried that if our trade customers can't borrow, they'll cut their spending and purchases from us. All of us will be affected.