Banks and building societies are withdrawing some mortgage deals after a fall in the pound fuelled forecasts of a sharp rise in interest rates.

Virgin Money and Skipton Building Society have halted mortgage offers for new customers, however submitted applications will still proceed. Halifax said it would stop mortgages with product fees.

In a statement, Virgin Money said the decision “helps us to focus our resources on existing customers and applications already submitted”.

The Nottingham for Intermediaries announced it is repricing a range of residential, buy-to-let, holiday let, RIO and self build products and is also withdrawing 14 additional products.

Kensington is also offering a new range of products and a note on Keystone's website said that "our products are currently not available but will be returning very soon".

On Monday the pound plunged against the dollar following Chancellor Kwasi Kwarteng’s announcement pledging further tax cuts. The pound stabilised overnight at $1.08 after hitting a record low of $1.03 yesterday.

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