Pound rate – live update: UK lenders pull mortgages from sale amid ‘failed budget’ turmoil

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A handout picture released by the BBC, taken and received on September 25, 2022, shows Britain’s Chancellor of the Exchequer Kwasi Kwarteng during an appearance on the BBC’s ‘Sunday Morning’ political television show with journalist Laura Kuenssberg

(AFP via Getty Images)

The British pound crashed yesterday to a record low against the US dollar even as the Bank of England warned that interest rates could be hiked “by as much as needed” to control inflation.

Amid the turmoil after new chancellor Kwasi Kwarteng’s mini-budget on Friday, in which he announced controversial tax cuts worth £45bn, including the axing of the 45p tax, two UK lenders temporarily withdrew their mortgage deals for new customers.

“Following last week’s [Bank of England base rate hike to 2.25 per cent] and the government’s subsequent mini-budget, we continue to see the market response unfold,” Skipton Building Society said in an email to brokers.

The statement added: “In response, we will be temporarily withdrawing our new business product range with immediate effect.” Virgin Money also withdrew mortgage deals for customers.

Chancellor Kwarteng is to reveal the government’s “fiscal plan” on 23 November, the Treasury said amid market panic over the borrowing-fuelled tax cut spree.

The government said the statement would include details on the new approach to borrowing, spending and tax-raising rules, including a pledge to ensure falls as a share of GDP in the “medium term”.

Key PointsShow latest update 1664255441Kwarteng faces massive market turmoil after disastrous day for sterling

Kwasi Kwarteng is contending with massive market turmoil sparked by his tax-cutting mini-budget as a disastrous day for the pound saw Labor take its biggest poll lead over Tories for more than 20 years.

The Treasury moved to settle the markets with the promise of a Budget next spring as sterling tumbled to its lowest level against the dollar for at least half a century on Monday.

Read the full story by Amy Gibbons here:

Kwarteng faces massive market turmoil after disastrous day for sterling

The Treasury moved to settle the markets with the promise of a budget next spring as the pound tumbled against the dollar on Monday.

Maroosha Muzaffar27 September 2022 06:10

1664254841Starmer takes aim at Tours as Labor buoyed by promising poll

Sir Keir Starmer will be buoyed by promising polling for labor as hes the Tories of losing control of the economy and vows to get the UK “out of this endless cycle of crisis”.

He will quote Sir Tony Blair to dub Labor the “political wing of the British people”, as a new YouGov survey suggests the party has opened up a 17-point lead over the Conservatives – the greatest since the firm began polling in 2001.

Read the full story by Amy Gibbons here:

Starmer takes aim at Tours as Labor buoyed by promising poll

The Labor leader will quote Sir Tony Blair to dub his party the ‘political wing of the British people’.

Maroosha Muzaffar27 September 2022 06:00

1664254241ICYMI: Shadow chancellor ‘very concerned’ by fall of pound following mini-budget

Rachel Reeves says she is “very concerned” about the fall of the pound following the announcement of Kwasi Kwarteng’s mini-budget, warning it will worsen the cost of the living crisis.

Pound Sterling: Shadow chancellor calls currency fall ‘very concerning’

Rachel Reeves says she is “very concerned” about the fall of the pound following the announcement of Kwasi Kwarteng’s mini-budget, warning it will worsen the cost of the living crisis. Speaking on Sky News, the shadow chancellor called for the government to set out a “credible plan” for public finances, claiming Mr Kwarteng’s failure to do that has spooked the market.” I started my career at the Bank of England, and I have to say, I haven’t seen anything like this before … the pound is at an all-time low against the dollar,” she said.Sign up for our newsletters.

Maroosha Muzaffar27 September 2022 05:50

1664253641Bank of England forced to intervene as pound crashes to all-time low after ‘disastrous’ mini-Budget

The Bank of England was forced into an emergency intervention on Monday, warning that it would not hesitate to hike interest rates “as much as needed” after the pound plummeted in the wake of Kwasi Kwarteng’s mini-Budget.

Sterling fell to its lowest ever level against the US dollar, dropping by more than 4 per cent to just $1.03 before regaining some ground.

Read the full story by Rob Merrick and Adam Forrest here:

Bank of England says it will raise rates ‘as much as needed’ after rout on pound

Emergency action fails to prop up pound, leaving Liz Truss facing political crisis after just three weeks in power

Maroosha Muzaffar27 September 2022 05:40

1664253041Pound edges higher in Asian trading

The British pound rose today in Asian trading after hitting a record low against the dollar, the Financial Times reported.

The report said that the pound sterling was up 0.9 per cent in morning trading at $1.0776, just a day after an early morning fall sent the currency tumbling almost 5 per cent to a record low of $1.035.

Maroosha Muzaffar27 September 2022 05:30

1664252441How will the plunge of the pound affect the cost of living crisis?

The aftermath of Kwasi Kwarteng’s tax-slashing economic plan revelations has seen the pound sterling plummeting in value, reaching an all-time low against the US dollar.

In light of this, those already struggling to make ends meet amid a cost of living crisis will all be asking the same question – what does this mean for my pocket?

Watch the video that explains how this could impact households here:

How will the plunge of the pound affect the cost of living crisis?

The aftermath of Kwasi Kwarteng’s tax-slashing economic plan revelations has seen the pound sterling plummeting in value, reaching an all-time low against the US dollar. In light of this, those already struggling to make ends meet amid a cost of living crisis will all be asking the same question – what does this mean for my pocket? Market confidence has been hammered by the Government’s biggest tax cuts in 50 years, sending the pound falling by over four per cent to the equivalent of just $1.03.This video explains how this could impact households. Sign up for our newsletters.

Maroosha Muzaffar27 September 2022 05:20

1664251841Kwasi Kwarteng to reveal new fiscal rules in November amid market panic

Chancellor Kwasi Kwarteng is to reveal the government’s “fiscal plan” on 23 November, the Treasury has said amid market panic over borrowing-fuelled tax cut spree.

The government said the statement would include details on the new approach to borrowing, spending and tax-raising rules, including a pledge to ensure falls as a share of GDP in the “medium term”.

Read the full story by Adam Forrest here:

Kwasi Kwarteng to reveal new fiscal rules in November amid market panic

Chancellor to set out medium-term ‘fiscal plan’ – but no proper budget until spring 2023, says Treasury

Maroosha Muzaffar27 September 2022 05:10

1664251066Lenders pull mortgages from sale amid market volatility after pound plunges

Three lenders have temporarily pulled mortgages that come with fees for new customers in response to market volatility prompted by the fall of the pound.

Halifax, Britain’s largest mortgage lender, is to withdraw the products until it works out what interest rates to charge, according to the Reuters news agency.

Virgin Money and Skipton have reportedly followed Halifax’s move.

Read the full story here:

Lenders pull mortgages from sale amid market volatility after pound plunges

The Bank of England said it could raise the interest base rate in an attempt to rein in inflation

Maroosha Muzaffar27 September 2022 04:57

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