Big bank bosses plan to raise concerns about rapidly rising mortgage rates with Chancellor Kwasi Kwarteng at a meeting today (October 6).
The critical meeting is expected to bring together chief executives from the UK’s biggest lenders, including NatWest’s Alison Rose, Lloyds Banking Group’s Charlie Nunn, HSBC UK’s Ian Stuart, Santander’s Mike Regnier and TSB’s Robin Bulloch at Number 11 Downing. Street, according to a Guardian article.
Leaders plan to raise concerns about rising borrowing costs, which surged last week after the government’s mini-budget plunged UK financial markets into meltdown.
Lending bosses could put table proposals that would mean the Treasury coordinates with the Bank of England to provide cheap funding for mortgages.
The program could mirror the term funding program offered to banks during the pandemic, which allowed them to borrow money from the central bank at cheap rates with the intention that these savings would be passed on to small business borrowers. who were struggling during the health crisis.
The meeting comes a day after the average two-year fixed-rate mortgage in the market topped 6% for the first time in 14 years. A typical two-year fix stood at 6.07% on Wednesday, according to Moneyfacts.
The last time a two-year average fix was higher than that was in November 2008, when it stood at 6.31%, the data group says.
The amount of mortgage products in the market fell 41% to 2,273 last week as companies pull the products to determine how to reprice them as the cost of government and corporate debt rose in the markets. international monetary policy, following the Chancellor’s intervention earlier this month, which reduced income taxes, stamp duties and national insurance payments.