Treasury weighs extending UK mortgage scheme to help first-time buyers
The Treasury is considering extending a mortgage scheme aimed at first-time buyers beyond the end of the year in response to recent turbulence in the home loan market that has led to a sharp rise in interest rates.
Prolonging the mortgage guarantee scheme was one of the ideas put forward by bank bosses at a meeting with chancellor Kwasi Kwarteng on Thursday, according to people familiar with the matter.
The chief executives of the UK’s largest lenders were summoned by Kwarteng to discuss the turmoil in the home loans market following his “mini” Budget at the end of last month. Lenders withdrew more than 1,600 mortgage products as a result of volatile gilt markets, which banks use to price fixed-rate loans.
This story originally appeared on: Financial Times - Author:James Pickford
