THE SNP have accused the Tory UK Government of "robbing young people of their dream of home ownership" and "pushing families into housing poverty" as interest rates soar and mortgage deals vanish from the market.

Following the mini-budget announcement on Friday, SNP housing spokesperson Patricia Gibson has warned the UK Government is "causing a spiralling housing crisis" that will leave many unable to afford their mortgage payments or get on the housing ladder in the first place.

It comes as Halifax, Virgin Money, and Skipton Building Society have halted mortgage offers for new customers and the Bank of England warns it may hike interest rates again as the pound suffered a dramatic fall against the US dollar.

Gibson said: "The Tory budget has been an unmitigated disaster, showing it's essential Scotland becomes an independent country so we can escape the damage of Westminster control.

"Through their reckless economic incompetency, the Tory government is robbing young people of their dream of home ownership, and pushing families into housing poverty, as interest rates rise and competitive mortgages are withdrawn.

"The richest few might be laughing to the bank but millions of ordinary families will be substantially worse off and struggle to get by as mortgages, rents, household bills and the cost of everyday goods are pushed even higher.

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"Liz Truss and Kwasi Kwarteng are causing a spiralling housing crisis that will leave many unable to afford their mortgage payments - or even get on the housing ladder in the first place. They are kicking the chance of a secure home away from people.

"Scotland is paying the price for Westminster failure. It's clearer than ever that independence is the only way to get rid of the Tories for good and keep Scotland safe."

Analysis of the market by found on Friday last week - when Kwasi Kwarteng announced tax cuts for the highest earners and a lift on the bankers’ bonuses cap – that 3961 residential mortgage products were available.

By Monday this week, the total had fallen to 3880 and, by Tuesday, it had shrunk further to 3596 deals - a reduction of 365 compared to Friday, the analysis for the PA news agency found.  

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Market experts said the Bank of England may need to increase interest rates by as much as one percentage point to 3.25%. It hiked them last week to 2.25% - their highest level since November 2008.

The pound dropped to $1.03 briefly in the early hours of Monday morning before recovering slightly to settle at around $1.08 on Monday afternoon.