Interest rate effect differs across UK regions

Recent rises in the interest rate are having greater effects in some areas of the country compared to others, a credit agency has said.

Five rate rises since last August have put extra pressure on the finances of people across the UK, but Experian Business Strategies found regions included Hull, Slough, Corby and Stevenage were suffering more than others.

Gross income, borrowing and spending of people living in these areas was studied and these areas were found to be facing the toughest time due to higher rates, which will see mortgage repayments rising.

"People with savings will gain and those with mortgages or large amounts of unsecured debt will lose out," said Neil Blake, chief economist at Experian.

Higher interest rates will be especially bad news for Hull as it is struggling to deal with the huge flood damage after the wettest June since records began.

But Mr Blake said Hull's tough-time will not be suffered alone as it will be "joined by a number of areas of the UK that contain higher proportions of people with large mortgages, lower gross incomes, significant levels of unsecured borrowing and fewer savings".

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