UK Finance Minister meets with financial industry representatives on mortgage borrower support issue | Reuters

On October 6, UK Chancellor of the Exchequer Quarteng held a meeting with financial industry representatives on the issue of assisting mortgage borrowers. Kwarteng listens to Prime Minister Truss’ speech at the Conservative party convention. FILE PHOTO: Birmingham May 5, 2022. REUTERS/Toby Melville

LONDON, June 6 (Reuters) – British Chancellor Quarteng met on Thursday with financial leaders on the issue of helping mortgage borrowers. announced by the UK Treasury.

A series of fiscal measures announced by Mr. Kwarteng on Sept. 23 sparked fears in the market that they were not backed by financial resources, sending government bond yields soaring. Although the Bank of England (British Central Bank, BOE) has come up with an emergency policy to purchase government bonds, mortgage interest rates have risen sharply. The situation is likely to add to the burden on many families who are already struggling with rising living costs.

Quarteng said at today’s meeting that the financial sector is responsible for providing the best mortgages, but the ministry will continue to work together in the coming weeks and months, according to a Treasury statement. I explained. The meeting was attended by representatives from major banks such as Barclays, Lloyd’s Banking Group and NatWest, as well as the Building Societies.

Industry sources also asked Mr. Quarteng whether he would extend the government’s mortgage guarantee scheme, which expires at the end of the year. Under this scheme, if a down payment of 5% of the house price is prepared, the government guarantees part of the remaining loan amount.

A person familiar with the matter said the Treasury Department had indicated it would consider an extension.

Kwarteng has hosted a series of meetings with the financial community since being appointed finance minister last month.

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