The mortgage summit called by the Chancellor to ensure lenders use forbearance on borrowers struggling to pay their home loans is underway.
The meeting began at 8am this morning at Jeremy Hunt’s official residence Number 11 Downing Street, according to the Guardian.
The move comes after the Bank of England raised the base rate by 50 basis points to 5% yesterday, its 13th rate rise in a row taking it to the highest level in 15 years.
Earlier in the week, inflation came in at 8.7% in the year to May, unchanged from the previous month. Markets had expected a 30bps fall.
Those at the meeting include Lloyds Banking Group chief executive Charlie Nunn, NatWest Group chief executive Alison Rose, Nationwide chief executive Debbie Crosbie, Barclays chief executive officer Matt Hammerstein and Financial Conduct Authority chief executive Nikhil Rathi.
The summit comes as The Liberal Democrats call on Hunt to reverse the £3bn of tax cuts being given to banks this year, and use the money to help struggling homeowners at risk of losing their homes.
Liberal Democrat Treasury Spokesperson Sarah Olney MP says: “The Chancellor needs to bring forward concrete measures to help people at risk of losing their homes, or else this summit risks being nothing less than a PR gimmick.
“That must start with reversing the massive tax cuts being given to the big banks and using the money raised to help struggling households.”
The government has said it wants assurance that lenders have measures in place to keep those struggling to pay their mortgage in their homes, such as mortgage holidays, temporary switches to interest-only payments and loan extensions.
However, many lenders say they already have these schemes in place for borrowers.
Hunt last met with mortgage lenders in December to discuss options for homeowners in financial difficulties in the aftermath of former Chancellor Kwasi Kwarteng’s September mini-Budget.
