Mortgages 'to rise' after Pound hits year low and borrowing costs soar in treble blow to Rachel Reeves

The Pound has slumped to its lowest level against the US dollar for over a year as government borrowing costs surged sparking warnings that mortgage rates will also rise.

Sterling weakened again on Thursday morning amid a deepening rout in UK government bonds, also known as gilts, with the Pound falling nearly 1% to just under 1.23 US Dollars, its lowest level since November 2023.