I'm working a seamless knitted bag with a lining; making it up as I go along. The handle was a free gift from Let's Knit Magazine, about 7 years ago. I had some discontinued yarn given to me and decided to make use of both yarn and handles.
The outside is Drops Safran (sport-weight) held double, on 5mm circs.
The lining is Debbie Bliss Cathay (aran-weight), on 5mm circs, picking up stitches fron the top of the change-of-colour row.
Handles are held in place by 12 rows of single rib, worked on straight needles with half the stitches from the circs. The cast-off edge is then grafted onto the stitches placed on holders when beginning the rib, plus stitches along the side gusset created by the use of straight needles. This bit is going to be very tricky to write out in pattern form, though it's easy enough to work.
I'm planning to add a flower to the front, (from Hitchin Lavender Craft Day on Sunday) and some sort of closing mechanism (if possible)
I'd like to make another bag using a different yarn (also a gift, and discontinued), but am appalled at how much the handles cost. They're wooden and would add £8 to the cost of making each bag.