The pound soared against the dollar and the euro as investors ramped up their bets on an imminent interest rate hike.
Rising interest rates would push up the cost of variable mortgages, squeezing the finances of many families already facing soaring energy bills and higher prices.
Laura Suter, head of personal finance at broker AJ Bell, said: 'Mortgage rates have been at rock-bottom lows for a long time and many homeowners have never known an environment of higher interest rates , so any rise will be a nasty shock for them.'
Daily Mail