The Liberal Democrats are urging Prime Minister Rishi Sunak to organise an emergency summit with banks and mortgage lenders at Downing Street.
This call comes amidst fears that homeowners may face financial hardship as cheaper mortgage deals are being withdrawn from the market due to increased market volatility.
The party’s plea follows speculation that the Bank of England may further raise interest rates, leading to steeper monthly mortgage payments for borrowers upon renewal of their contracts.
The ongoing instability in the mortgage market has been exacerbated by a surge in gilt levels, which now exceed those seen following the recent mini-Budget, prompting several lenders to temporarily withdraw their mortgage offerings. In response to these concerns, the Liberal Democrats are proposing the establishment of an emergency support fund for mortgage borrowers. This fund would aim to provide temporary grants to homeowners most at risk of losing their homes due to these rapidly changing financial conditions.
The party’s Treasury Spokesperson, Sarah Olney MP, criticised the Government’s handling of the situation: “This Conservative government has unleashed mortgage hell for millions of homeowners but isn’t lifting a finger to help. “Rishi Sunak is totally out of touch with the concerns of people across the country worried sick about how they will afford their monthly mortgage payments.”
She further urged the Prime Minister to intervene: “The Prime Minister should haul the banks into Downing Street and discuss what extra support can be given to homeowners on the brink. The very least that Conservative Ministers should do is take responsibility for the mess they’ve created instead of sitting on the side lines.”
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