Banks and building societies will offer more flexibility to mortgage holders struggling with high interest rates, Chancellor Jeremy Hunt has said after a meeting with major lenders in Downing Street.
Top executives of banks and building societies were summoned to Downing Street on Friday to discuss ways to help mortgage holders following 13 consecutive interest rate rises in 18 months.
The Bank of England on Thursday raised interest rates from 4.5 to 5 percent, a level last seen in April 2008, putting further pressure on mortgage holders.
Terraced houses in southeast London on Jan. 13, 2023. (Daniel Leal/AFP via Getty Images)
According to estimates by the Resolution Foundation, average household re-mortgaging would cost an extra £2,900 next year. The Institute for Fiscal Studies warned on June 21 that 1.4 million people could lose 20 percent of their disposable income to rising mortgage payments….