A terrorist washed his knife and wiped it on his beard in a "chilling gesture" after killing eight people at London Bridge and Borough Market, an inquest has heard.

Khuram Butt, 27, was caught on CCTV cameras cleaning his 12 inch pink ceramic knife inside Black and Blue restaurant while Youssef Zaghba, 22, took a drink from the tap behind the bar.

The terrorists' movements were part of harrowing footage showing the London Bridge terror attack unfolding in real time has been played at the inquests into the eight victims’ deaths.

Jonathan Hough QC, counsel for the coroner, had warned the families of the victims in court that "distressing images" would be shown, and Butt's reaction was "the most chilling".

A grim compilation of video clips from CCTV, dashboard cameras and handheld camera phones charted the progress of the atrocity in minute detail.