KEY POINTS

Group of terrorists in a white van ploughs into revellers on London Bridge
They then attacked punters at Borough Market with 12-inch hunting knives
Canisters attached to their chests which turned out to be hoax explosives
Seven people dead, three suspects killed, 48 patients taken to hospitals. Several treated at the scene.
Kiwi man Oliver Dowling recovering after suffering multiple stab wounds
According to Prime Minister Malcolm Turnbull, there are reports that two Australians were caught up in the attack
Injuries included cut throats
Declared by police a terrorist incident
"Tremendous gunfire" heard and armed police fired shots
Whole area and tube stations in lock down

Seven victims are confirmed dead after a group of terrorists with hoax explosives strapped to their chests drove a van into pedestrians on London Bridge before jumping out and stabbing people.

A Kiwi man is among the injured after three Jihadi terrorists shouted "this is for Allah" as they stormed the Borough Market area, full of pubs and restaurants, and attacked punters with 12-inch hunting knives.

London police have confirmed that seven people are dead and that three suspects have been shot dead.

Police say they believed there were three attackers but there was still "more enquiries to be 100 per cent confident".

Christchurch man Oliver Dowling, 32, was stabbed in the face, neck and stomach, his sister Freddy posted on Facebook.

He is now recovering after a four-hour surgery.

"Doctors are very happy with how he's come out the other side. A massive thank to the University of London Hospital for their tireless efforts in helping my brother out!!"

Freddy said her brother survived because the attackers missed all his vital organs.

His girlfriend Marie Bondeville is also believed to have suffered injuries in the attack but her status is unknown.

London Ambulance Service said 48 people were taken to hospital. Several people were treated at the scene for less serious injuries.

One of the injured is a British Transport police officer who was responding to the incident.

His injuries - to his head, face and leg - are serious but not thought to be life-threatening.

World leaders including New Zealand Prime Minister Bill English have condemned the terror attacks and pledged allegiance to the British people.

The flags at Downing St are flying at half mast and SAS special forces have been deployed on the streets of London.

The nation's international terrorism threat level remains at severe.

The incident, involving men described as being 'of Mediterranean origin', happened along Borough High Street in central London at 10pm.

The terror unfolded as officers arrived at the scene shortly after 10pm to reports of a vehicle striking pedestrians on London Bridge.

The white van then continued to drive to Borough Market where the three men left the vehicle and began stabbing people, including a British Transport Police Officer.

Witnesses reported seeing the vehicle plough into victims about 90 km/h.

"A white van driver came speeding ... veered off the road into the crowds of people who were walking along the pavement," according to BBC reporter Holly Jones who was at London Bridge.

"He swerved right round me and then hit about five or six people. He hit about two people in front of me and then three behind."

Witness Eric described the terror attack as a "rampage". He told BBC Radio 5 Live he saw three people get out the van and initially believed they were going to help those who had been injured.

"The three people literally started kicking them, punching them, and took out knives. It was a rampage really," he said.

The men ran off towards the nearby bars and restaurants and there was a shout of "this is for Allah", he told the station.

Another witness called Gerard said the suspects stabbed a series of people near Borough Market and shouted, "This is for Allah".

Liam Connell was in Katzenjammers Bierhall in Southwark Street, where customers were told to evacuate by staff before armed police told them to get on the ground.

"Then someone came in off the street and he had a white cuff around his neck," he told The Press Association.

"(The man) said he had been stabbed in the neck and I was holding his bandage and wound while he was talking to the police."

Guy's and St Thomas' NHS Foundation hospital said it was "on lockdown" to keep patients, relatives and staff safe, while a picture on social media showed armed police outside the Andaz Hotel in Liverpool Street, where the walking wounded were reportedly taken.

"We took 48 patients to five hospitals across London and treated a number of others at the scene for minor injuries," London Ambulance Service Assistant Director of Operations Peter Rhodes said.

"At this stage, we believe that six people have died in addition to the three attackers shot dead by police and at least 20 casualties have been taken to six hospitals across London," Assistant Commissioner Mark Rowley of the Metropolitan Police said.

"We believe three people were involved but we still have some more inquiries to be 100 per cent confident on that."

He added officers were treating the incident as terrorism and additional police would be deployed in the capital.

The attack has received widespread condemnation from political leaders, with London mayor Sadiq Khan calling it "deliberate and cowardly" attack on innocent Londoners and visitors enjoying their Saturday night.

Prime Minister Theresa May said her thoughts were with "those who are caught up in these dreadful events".