How will you be affected if interest rates rise?

The Bank of England has warned that interest rates may rise later in the year, as George Osborne issues new powers to limit mortgage lending. How would this affect you?

The governor of the Bank of England warned on Thursday that interest rates may rise later in the year, as George Osborne took action to limit the size of mortgages.

Mark Carney said that rates could rise above 0.5% "sooner than markets currently expect". He said that "gradual and limited" increases would be needed to reduce the risks of an overheated housing market. The City has expected the first increase in official borrowing costs since 2007 to take place early next year.