Michael Race
business reporter

Interest rates can affect people in different ways, and it all depends on your circumstances.

Mortgage holders Those with variable or tracker mortgages, or those looking to secure new fixed-rate deals, will face higher or lower monthly repayments depending on whether the UK prime interest rate is raised or lowered.

If the odds are higher, it gets harder overall first time buyers, as borrowing becomes more expensive and they may find themselves priced out of the market.

Higher rates often mean increased fees for those without coverage loans and credit cardsHowever thrifty people They should benefit from higher interest rates and get better returns on their money. While low interest rates make borrowing cheaper, they mean banks tend to offer lower returns on savings.

Higher rates could also be good news for these people. on the verge of retirementWho might have a better annual income rate? This determines how much guaranteed income you’ll get when you replace some or all of your retirement pot with safe income. This is because providers often purchase government bonds, which will increase in line with higher interest rates.

For government However, recent high interest rates mean this is happening. Paying more interest on the country’s debts. This follows financial markets’ reaction to Rachel Reeves’ budget, which showed an increase in the amount the government has to pay lenders.

You can learn more about how rates can affect you and your money Here.