Mortgage rates 'likely to go up' if Britain leaves EU, claims Osborne

Mortgage rates are likely to rise if Britain quits the European Union, the Chancellor has warned.

Families would be left "paying the price" of a Brexit as instability in financial markets pushed up the cost of repayments, George Osborne insisted.

Experts are "pretty clear" that prices would increase if voters choose to leave the 28-strong bloc in the June 23 referendum, he said.

The International Monetary Fund (IMF) earlier this week warned that quitting could inflict "severe regional and global damage" and downgraded its forecast for UK economic growth.

Mr Osborne, who is visiting the US, told Sky News: "If you look at the view of the experts here at the IMF in Washington it's pretty clear that if Britain votes to leave the EU then prices will go up and there will be instability in financial markets.

"What that means for families is that mortgage rates are likely to go up. In other words, it will be families paying the price if Britain votes to leave the EU and I think it's another reason why, frankly, we are stronger, safer and better off inside the European Union."