Interest rate rise - your reactions

The Bank of England has raised interest rates by a quarter percentage point to 4%.

The move was widely anticipated, but it is only the second rate rise in almost four years.

High house prices, runaway debt, and more buoyant economic growth have played a part in the decision.

But while the policy gurus try to wrestle with the credit and housing booms, how will the measures affect ordinary people?

BBC News Online asked for some views on how people would be affected by the rate rise.

Can they ride out the increase, or will the rate rise cause misery?

Daniel Yates, a first-time buyer and new father

George Elliot, a homeowner and businessman

Ray Elsworth, has concerns for first-time buyers

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Daniel Yates, 32
first-time buyer with young family, lives in north London

The interest rate rise could not have come at a worse time for Mr Yates and his young family.

The worry is that the housing market will come to a standstill and we will not be able to sell Daniel Yates

Mr Yates has been made redundant and his wife Aoife is on maternity leave looking after their three-month-old daughter Dervla.

Money is tight and Mr and Mrs Yates are considering starting again in Manchester.

"If we sold our two-up two-down in Enfield we could afford a three bedroom house up north," Mr Yates said.

However, the rise in interest rates could scupper their plans.

"The worry is that the housing market will come to a standstill and we will not be able to sell," Mr Yates said.

Mr Yates estimates that the interest rate rise will cost him £25 a month which could have serious implications for the family finances.

"I hoped to spend time with my daughter. However, my redundancy cash is being eaten away.

"I may have to take a temporary job just to make ends meet, while we start the ball rolling for the move to Manchester."

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George Elliot, 28
design company director, Newcastle

Mr Elliot's mortgage repayments will rise by £20 a month but even more of a concern is the impact the rate rise may have on his business.

"My firm is involved in the leisure industry and how much people have to spend is crucial to business. Take money out of peoples pockets and they will stop spending on leisure."

How will the latest interest rate rise affect you?

In pictures

Mr Elliot's firm employs 48 full and part-time workers and is looking to expand.

However, Mr Elliot fears that some plans to expand may have to be put on ice if rates rise further.

"Our plans are not threatened at present but further rate rises could hit investment and ultimately recruitment."

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Ray Elsworth, 56
sales and marketing manager, Perthshire

Reading the interest rate runes Mr Elsworth decided to fix his mortgage rate for five years back in June.

If my son was buying today I would still encourage him to take the plunge Ray Elsworth

However, Mr Elsworth's son has just become a first-time buyer, taking on a hefty mortgage.

"I remember the crash of the early nineties and I have real concerns for first-time buyers, particularly as interest rates seem to be on the up."

But Mr Elsworth is not predicting a housing market crash.

"I think the shortage of good available homes will keep property prices moving up for the next couple of years."

Overall, Mr Elsworth still sees property as a good long term investment.

"If my son was buying today I would still encourage him to take the plunge.

"It may mean his finances are stretched for a while but your own home is still worth going for."