Kwarteng to ‘work closely’ with banks as five-year mortgage rates hit 6%; pound falls through $1.12 – as it happened

Average mortgage rates hit 12 year high, as ratings agency Fitch lowers outlook on UK debt to negative" from stable"

• UK banks to raise mortgage market fears in Kwarteng meeting

Rather than clearing the crisis in-tray, problems keep piling up for the Truss administration, says Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown:

Another threat of a ratings downgrade comes hard on the heels of mortgage rates shooting up to 14 year highs and the steep rise in oil prices, which threaten to keep fanning the fires of inflation.

The Prime Minister's speech yesterday had nothing new to reassure markets and with political divisions widening within her party of how to pay for big tax cut promises, ratings agencies are far from impressed. Fitch followed S&P to cut the outlook on the UK's AA investment grade rating to negative from stable.