‘Really dreadful’ - Liverpool reacts to interest rates hike as mortgages and rents rise

The Bank of England has raised interest rates for the 13th time in a row as it battles to control rocketing prices. The Bank announced on Thursday it would increase rates from 4.5% to 5% - the highest since 2008 - and it’s bad news for those with mortgages, credit cards and loans.

Homeowners are facing large increases in mortgage repayments, with the average two-year fixed rate deal hitting 6.19%. The 0.5% hike means those on a typical tracker mortgage will pay about £47 more a month while those on standard variable rate mortgages will face a £30 jump.

We've been on the streets of Liverpool to find out how you're coping with the cost of living crisis.

• June said: "Dreadful, really dreadful. Bills, the cost of living, everything. It's terrible."
• Mike said: "Poor people always seem to shoulder the burden for all the government's mistakes."
• Ben said: “Everything going up is making it a little bit harder to get by.”

The price squeeze on tenants as rental affordability (which compares rents with wages) has reached its worst point in 10 years, according to a new report by Zoopla. In Liverpool, the average rent increase from 12 months to April has risen 8.5%.

• Watch the video above for more reaction and opinion from the Liverpool public.