Jeremy Hunt claims ‘the government will do what is necessary’ to tackle inflation
The Prime Minister has announced mortgage holders will be offered a series of steps to help them cope with soaring interest rates that are costing some thousands of pounds a month.
After a key meeting with lenders, Jeremy Hunt revealed new measures including the ability to talk to banks or build their society without affecting their credit scores.
Mr Hunt, who opposes providing government assistance to borrowers, said banks and building associations had agreed to give a minimum of 12 months before foreclosure.
And he said lenders will allow struggling borrowers to extend the term of their mortgage or temporarily switch to an interest-only plan, “no questions asked.”
The Prime Minister met with HSBC bosses Santander and Barclays among others, after a 0.5 percentage point increase in the prime rate threatened to inflict further damage on struggling households.
He stressed that tackling persistently high inflation, the reason behind the Bank of England’s continued interest rate hikes, was “the number one priority”.
Previously, Downing Street had pledged not to intervene directly to help mortgage holders struggling with escalating costs.
Prime Minister unveils new measures to help mortgage borrowers
The Prime Minister has announced mortgage holders will be given new steps to help them cope with soaring interest rates leaving some facing extra payments of thousands of pounds a month.
After a key meeting with lenders, Jeremy Hunt revealed new measures including the ability to talk to banks or build their society without affecting their credit scores.
Borrowers will also be able to switch to interest-only loans or renew their mortgage, he said.
Jane DaltonJune 23, 2023 13:19
Martin Lewis criticizes banks for ‘outrageous’ delay in raising better savings rates
Consumer campaigner Martin Lewis says it seems “absolutely outrageous” that rates for savers are lagging behind those for mortgages:
Jane DaltonJune 23, 2023 16:30
‘Plastic plasters for sputtering wounds’
Liberal Democrat Treasury spokeswoman Sarah Olney called Jeremy Hunt’s deal with the lenders “a plaster on a spewing wound”.
“Even after today, bailiffs will still knock on people’s doors because the Government refuses to help,” she said.
David Linden, SNP’s Social Justice spokesman, welcomed the foreclosure action but described the measures as “paper thin”.
Jane DaltonJune 23, 2023 15:59
The Tories must be held accountable for the crisis they have created, Labor says
Shadow Chancellor Rachel Reeves predicted a “weak” response from the government to the “mortgage crisis they have created”.
It shows little understanding of what families are facing, she insists.
“Questions remain about the voluntary level of these measures. The government must provide clarity and trust to homeowners by making requests now to reassure households.
“Instead of shrugging, the Conservatives should take responsibility and act now.”
Jane DaltonJune 23, 2023 15:34
There is only one cure for our hyperinflation: we need to trigger a recession
The Bank of England has failed to control escalating prices – only drastic measures can put the economy on track, writes Chris Blackhurst.
Read Chris’s full work here:
Matt MathersJune 23, 2023 15:07
The Blame Game of Interest Breaks Out Between Tories and Bank of England
In case you missed: A particular blame game broke out after the Bank of England was forced to raise interest rates to the highest level in nearly 15 years:
Jane DaltonJune 23, 2023 14:45
Martin Lewis welcomed the mortgage deal and said he was ‘satisfied’ the prime minister listened to him
Martin Lewis has welcomed an agreement between the government and banks to help struggling homeowners pay their mortgages.
The money-saving expert said he was “delighted” to see the prime minister “listened” after meeting him earlier this week.
“The unprecedented spike in mortgage rates is creating a nightmare for many with mortgages changing and those about to be fixed,” he said.
Therefore, the most important thing we can focus on at the moment is appropriate and flexible tolerance measures.
While the Bank of England’s goal is to squeeze people’s disposable income, no one wants people’s lives ruined by debt and foreclosure – and that’s the emergency protection we have. We need to focus.”
“I met the Prime Minister on Wednesday and reiterated that the very least we need is to make sure that when people ask for help from the lenders, they know that if things change, it won’t. detrimental to their financial situation and their credit score will be protected As much as possible.”
“I am pleased to see that the Prime Minister has been listening. “
Matt MathersJune 23, 2023 14:40
Who is really responsible for inflation – Rishi Sunak, or the Bank of England?
Why did politicians give up interest rate control 26 years ago, ask John Retoul.
Read Johns’ full section here:
Jane DaltonJune 23, 2023 14:25
Meeting ‘very productive’, bank manager says
NatWest chief executive Alison Rose said it was a “very productive meeting” as she left Downing Street to gather with Jeremy Hunt.
“We are doing everything we can to help our customers and address concerns,” she said.
Jane DaltonJune 23, 2023 14:11
It is Sunak and his companions who are the real villains in the supermarket price war.
Food prices are a global issue but UK Prime Ministers, politicians and monetary policymakers must be held accountable for making Britain worse than they could have – not supermarkets, write James Moore.
Read James’s full work here:
Matt MathersJune 23, 2023 14:10
