'My mortgage is going up £200': How rising interest rates are hitting people's pockets

On Thursday, the Bank of England increased interest rates for the first time in over three years as it tries to get a grip on rising inflation linked to the Iran war. Experts say there could be more hikes over the next 18 months, as the conflict continues to push up food, fuel and energy prices across the UK and worldwide. Higher interest rates affect borrowing costs, however, which means mortgages, credit cards and personal loans could get more expensive for millions, even as savings rates improve.

For some, it could mean extra financial pressure at a time when they are already struggling with the cost of living. The BBC spoke to three people about how they could be affected. These loans track the Bank of England base rate, with a margin on top determined by the lender, so any rise in interest rates can push up repayments.

Peter, who runs a small tiling business in Halifax, says his monthly repayments will go up by roughly £45 following Thursday's quarter-percentage point increase and he's worried they could climb higher.