Mortgage lenders halt some deals after pound falls

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Mortgage lenders halt some deals after pound falls
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The move has been prompted by volatility in the pound following the government's mini-budget

Some mortgage deals have been withdrawn by banks and building societies due to volatility in the financial markets following the government's mini-budget.

The bank said it would "not hesitate" to hike interest rates to curb inflation, after the pound fell to a record low against the US dollar. Overnight, the pound appeared to settle at $1.07. The plans will require a large increase in government borrowing and concerns among investors about the country's ability to repay that debt led to the value of the pound being pushed down. The cost of UK government borrowing also climbed.

The Bank of England said it would make a full assessment as to whether it should change interest rates at its next meeting on 3 November, following speculation it might have intervened earlier.

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