Chancellor Jeremy Hunt is to hold a mortgage summit this Friday with banks being summoned to Downing Street for emergency talks, according to reports that have emerged today.
The Independent is reporting that the Chancellor wants to ramp up pressure on lenders to increase support for borrowers overstretched by rising payments.
Yesterday the Prime Minister ruled out Government support for mortgageors and banks operating in the sector along with trade bodies such as IMLA have been clear that they will provide support should borrowers seek it.
Earlier today Moneyfacts data revealed that average 2-year mortgage rates had passed 6.07% – the highest level seen since 2008.
Speaking in the Commons the Chancellor confirmed that Government intervention remains off the table.
He said: “We won’t do things that will prolong the inflationary agony that people are going through.
“Much as we sympathise with the difficulties and will do everything we can to help people seeing their mortgage costs go up, we won’t do anything that would mean we prolonged inflation.”
